BIS Review 165/2010  the debt-to-GDP ratio over a three-year period) has been praised for its automaticity as well as its simplicity. It has been argued that “the practical translation” of the debt principle is “elegant, but short-termist”, even if this “way of turning around the 60% nonsense is undoubtedly clever”.
6 There is no question, however, that a consistent and progressive reduction of the current high debt levels over the cycle is absolutely necessary; they are a major constraint on our countries’ adjustment possibilities, especially in the event of shocks that could have irreversible consequences (due either to the unwillingness to pay or to the socio-political unfeasibility discussed by Balcerowicz).