Debt sustainability and the new social contract
By Toby Fildes 22 Dec 2020 If 2020 was all about piling on the debt as governments around the world rushed to save their economies and societies, 2021 will be all about working out ways to reduce it — or at least sustain it. Uncomfortable questions about debt sustainability have so far largely been avoided, thanks to vast (and in some still cases, still growing) quantitative easing programmes. But those questions will surely come. Developed countries’ debts have typically gone up by between 10% and 20% of GDP in 2020. So what are the options? Apart from running a fiscal surpl...