a column by Cinzia Alcidi and Daniel Gros for VOX: CEPR’s Policy Portal
The relationship between high public debt and low interest rates is once again at the forefront of debate.
This column shows that countries with high debt levels pay a risk premium. This creates the potential for self-reinforcing loops of high debt and high risk premia, which can become explosive.
Continue reading
Hazel’s comment:
I realise that this column is all about countries, large organisations, public debt etc but the underlying premise applies to individuals and households as well.
Too much debt is not a good thing.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment