In other words, the greater the government debt, the greater the pressure on the cost of capital for the whole economy. A rise in the price of long-term capital eventually affects the price of short-term money, and this clearly harms investment and growth.
This effect is clearly evident this year: the yield on 10-year government bonds declined in the first half of the year (from 5.6 percent in January to 4.3 percent in June), but went back up (to 4.6 percent in September) when the government had to increase its borrowing because the deficit significantly exceeded the level originally planned.