Falling real interest rates, rising debt: A free lunch?

Kenneth Rogoff

Journal of Policy Modeling, 2020, vol. 42, issue 4, 778-790

Abstract: Deep systemic financial crises tend to be infrequent events, as they leave deep lasting scars on the psyche of consumers, investors, politicians and regulators. Normally, especially given strengthened regulation and, one would not expect another systemic event for many decades. But the situation today is anything but normal. Record high global public and private debt combined with political paralysis and extraordinarily weak leadership outside central banks make today’s uncharacteristically fragile at this point in the debt supercycle.

Keywords: Systemic financial crisis; High public and private debt; Political paralysis; Debt supercycle (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:42:y:2020:i:4:p:778-790

DOI: 10.1016/j.jpolmod.2020.03.004

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