The number was selected as that which makes debt remain constant at 60% of GDP at "normal" growth rates
Also, please remember to mention whether one needs to assume that "the recession is an outlier" in the definition of "'normal' growth rates".
What size of the government revenue as a fraction of GDP is assumed for the calculation?
How long and deep is the business cycle assumed to be in the calculation? En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
Also, the 3% was also supposed to be a maximum allowed deficit, not a guideline value during normal growth. En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
