The COVID-19 lockdowns have inflicted serious long-term economic damage. But while leveraging up the economy should avoid further damage in the short term, the global economy could struggle to grow out of its debt over the longer term.
The COVID-19 lockdowns have inflicted serious long-term economic damage. But while leveraging up the economy should avoid further damage in the short term, the global economy could struggle to grow out of its debt over the longer term.
Global debt reached a new record during the first quarter of this year, reaching 331% of GDP, or $258trn (€229trn), according to the Institute of International Finance, the global association of the finance industry.
Global debt reached a new record during the first quarter of this year, reaching 331% of GDP, or $258trn (€229trn), according to the Institute of International Finance, the global association of the finance industry.
Now we are in the midst of government debt levels ballooning, without a rise in bond yields, so far. This has likely been made possible by the perception of close co-ordination between monetary and fiscal policy, notably the central banks’ commitment to keep interest rates low.
Now we are in the midst of government debt levels ballooning, without a rise in bond yields, so far. This has likely been made possible by the perception of close co-ordination between monetary and fiscal policy, notably the central banks’ commitment to keep interest rates low.
Central banks are making unprecedented efforts to keep interest rates low but there are doubts about their ability to meet their inflation targets with both upside and downside risks. In other words, the path towards bringing global debt to more acceptable levels while ensuring economic growth is fraught with difficulties.
Central banks are making unprecedented efforts to keep interest rates low but there are doubts about their ability to meet their inflation targets with both upside and downside risks. In other words, the path towards bringing global debt to more acceptable levels while ensuring economic growth is fraught with difficulties.
>"Global debt reached a new record during the first quarter of this year, reaching 331% of GDP, or $258trn (€229trn), according to the Institute of International Finance, the global association of the finance industry."
>"Global debt reached a new record during the first quarter of this year, reaching 331% of GDP, or $258trn (€229trn), according to the Institute of International Finance, the global association of the finance industry."