Spending credibility matters for refinancing the public debt

In the comments on the mini-budget, the public debt is mentioned frequently. You might have read or heard that public debt should not become too much. The state must pay interest before any other spending and a too large interest burden means there is less money left for other spending. If the interest rate is higher than the growth rate of the economy, the interest payments and the size of the debt easily become too big. But a lot less is said about the fact that the underlying government bonds must be redeemed from time to time. This week Standard Chartered warned about this. * The Economics Minute is supported by the NWU Business School.