Shifts in the long-term outlook for interest rates relative to GDP growth have left the fiscal position in most developed economies looking more precarious. Unless governments manage to reduce their sizeable primary deficits, market concerns about public sector debt sustainability are likely to grow, potentially pushing some countries back towards financial repression to keep interest rates artificially low.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.