Econosights: Will fiscal stimulus lead to a global debt problem? | AMP Capital
Econosights: Will fiscal stimulus lead to a global debt problem? Key points Record-like levels of fiscal stimulus to combat the economic shock from the Covid-19 pandemic will add large amounts to government debt. Rising debt could become inflationary but only if demand starts outstripping supply. For now, the enormous amount of spare capacity and “free” government services mean deflation is more likely in the short-term. Public debt levels become unsustainable when government bond yields outstrip …