Rising Interest Rates Challenge Long-Standing Pro-Debt Economic Policies Over the last decade, many economists have promoted the use of debt to finance government spending, dismissing concerns about potential debt overhangs as advanced economies enjoyed low interest rates. However, the past two years have seen a significant shift in this perspective due to rising inflation and a return to normal long-term real interest rates. A recent reassessment by senior IMF economists highlights that with average debt-to-income ratios in advanced economies projected to rise to 120% of GDP by 2028 and higher borrowing costs becoming the norm, there is a pressing need for these nations to rebuild fiscal buffers and ensure the sustainability of their debt. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Fed Survey Reveals Growing Pessimism Among US Companies READ MORE High Oil Prices Halt Biden's Plan to Replenish Strategic Reserve READ MORE Fed’s Operating Losses Grew to Record $114.3 Billion in 2023 READ MORE Gold Consolidates as Markets Await Clues on Fed's Next Move READ MORE U.S. Dollar Weakness Propels Copper to Six-Week High READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment