Now they are increasing spending, but what happens when tax revenues fall off the cliff because people aren’t working? A debt jubilee, inflate the debt away, debt restructuring, or deficits don’t matter MMT – what will they do?
The latest surge in government debt sales comes after levels had already risen in 2019 when global debt across all sectors bulged by over $10 trillion to exceed $255 trillion.
Governments and central banks around the world have unleashed unprecedented fiscal and monetary stimulus and other support for economies floored by the coronavirus pandemic with the G20 pledging in March 26 it would inject more than $5 trillion into the global economy to limit job and income losses.
By the end of 2019, global debt stood at 322% of GDP – 40 percentage points higher than at the onset of the 2008 financial crisis, the IIF said.
Hat tip to Daniel Lacalle