Debt and economy

Borrowing can stimulate one economy and generate a faster economic growth. It is the same as running a business that borrowing could increase a company's growth. However, just like firms, a too high gearing level could lead to insolvency, when an economy bears too much debt, like Greece, the country will suffer a period of reorganizing its economy, paying back its debt and having a relatively low economic growth. Moreover, the banking industry will have a long period of untrusting the economy and further drag back the economic growth. Therefore, it is very important to find a balance between debt and stabilisation. My opinion is to set up an upper boundary of the debt level, the upper boundary should be equal to 100% plus the sum of the previous 5 years' growth rates and the forward 5 years' estimated growth rates, as this could ensure a country's capacity to pay back its debts and also take the potential economic growth into account.