Debt Sustainability : A Global Perspective
Schuknecht, Ludger
This study presents the facts, arguments and scenarios around public debt from a global perspective. Especially the largest economies feature record debt and fiscal risks, including from population ageing and financial imbalances. Given low interest rates, there is no imminent problem. But at some point, debt will have to come down. There are four possible scenarios how debt could come down. First, governments could economise and reform. Second, governments could default. Third, governments could erode the real value of debt via inflation and negative real interest rates. However, this scenario cannot continue forever. Policy errors can prompt a loss of confidence, destabilisation and crisis. This fourth scenario last included the largest economies in the 1970s. It would become a major global challenge if it were to happen again in today's interconnected world.
Categorias:
Ano:
2022
Edição:
New
Editora:
Cambridge University Press
Idioma:
english
Páginas:
120
ISBN 10:
1009218492
ISBN 13:
9781009218498
Série:
Cambridge Elements in International Economics
Arquivo:
PDF, 4.07 MB
IPFS:
,
english, 2022