Debt‑to‑Wealth Lens

Treat sovereign indebtedness not only as a debt‑to‑GDP flow problem but as a stock problem relative to national wealth and asset liquidity. Assessing fiscal risk should incorporate debt’s hedge properties (covariance with growth), wealth composition, and the timing asymmetry that makes public debt a poor cushion in downturns. — Shifting debate from debt/GDP to debt/wealth and asset covariances changes what counts as sustainable borrowing and how markets should price sovereign risk.