The change in debt ratio can be written as the equation
Where G-T is the primary budget deficit. r is a constant interest rate. g is the growth rate.
The equation for debt ratio can be drawn in a △d/d graph, as a linear function, where (r-g) is the slope.
What I don't understand is when g>r, the debt ratios will converge at a final d* for a given budget deficit, and when g