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Commenting on the aspect of "Governments will tighten money supply when things get better". It seems, the governments around the world are also raising debt at
by somberi 6y ago
Commenting on the aspect of "Governments will tighten money supply when things get better". It seems, the governments around the world are also raising debt at a levels never seen before. There are pros and cons for this - Pros being if the growth rate is higher than the interest rate, by all means, get debt. The con is that the _rate_ of debt accumulation will make it worse for the future payouts, even of growth is higher.
An article that I found useful is:
https://www.economist.com/finance-and-economics/2021/02/13/should-governments-in-emerging-economies-worry-about-their-debt?frsc=dg%7Ce https://www.economist.com/finance-and-economics/2021/02/13/s...
Archived:
https://archive.is/wip/0q0fz https://archive.is/wip/0q0fz