When Debt Meets Slower Growth

A rising public-debt burden can collide with a labor market that is losing momentum and a central bank that still needs to control inflation. Explain how governments balance debt sustainability, job creation, and monetary credibility in this setting. Use frameworks such as the output gap, debt servicing costs, primary balance, and interest-rate transmission. Finish by outlining which indicators you would watch to decide whether the economy is entering a soft landing, stagnation, or a policy trap.