The global debt problem(s)

A new McKinsey report estimates that total debt of households, corporates, and governments has expanded 40% since 2007, reaching a total of 286% of...

The impact of high public debt on economic growth

Academic work suggests that public debt above 90% of GDP is a drag for GDP growth. This would apply to the developed world today....

The global debt overhang

A new IMF report illustrates that a large share of both advanced and emerging economies struggle with private debt overhangs. Excessive debt is a...

The 1×1 of financial repression

Financial repression is a policy that channels cheap funding to governments, typically supported by accommodative monetary policy. After the global financial crisis various forms...

Global public finances: basic facts and numbers

The latest IMF fiscal monitor underscores progress in global fiscal consolidation. The structural government deficit in the developed world has been reduced by 1.2%-points...

Useful summary of fiscal developments from the IMF

The IMF Fiscal Monitor provides the usual insightful global summary of public finance trends. It reveals significant progress in the reduction of structural deficits...

History of public debt reduction

In its October 2012 World Economic Outlook the IMF presented a 135-year study on public debt reduction strategies. It points out that debt stocks...

Why governments have financial interest in higher inflation

With G7 public debt stocks at record highs, inflation has become a key fiscal concern. A new IMF paper estimates that a fall of...

The full scope of U.S. federal government liabilities

James Hamilton from the University of California has published some scary numbers on growth and size of U.S. federal government liabilities that are not...

Monetary financing does not preclude sovereign default

Most investors take for granted that a government with access to monetary financing cannot be driven to default. However, a new paper by Corsetti and...

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