Fiscal policy directly impacts interest rates and economic growth, study finds.
The article looks at how well countries can manage their money in the long run. They use a special math formula to see if a country's debt compared to its economy is getting better or worse over time. By looking at data from the 1990s, they ranked 12 countries based on how well they can keep up with their debt. They also found that in some countries, the way the government spends money affects how much interest rates go up or down.