Fiscal measures and global debt

Here is the latest on fiscal measures (courtesy: IMF) deployed by different countries:

Source: IMF blog

This stimulus collectively amounts $11 trillion worldwide. Yet, the state of global public debt is worrying too.

Source: IMF Blog

Authors Vitor Gaspar and Gita Gopinath write:

In the face of a sharp decline in global output, a massive fiscal response has been necessary to increase health capacity, replace lost household income and prevent large-scale bankruptcies. But the policy response has also contributed to global public debt reaching its highest level in recorded history, at over 100 percent of global GDP, in excess of post-World War II peaks.

Read more here.

Recommended: An April 2020 Bloomberg piece by Andy Mukherjee and another June 2020 piece by Somnath Mukherjee on public debt in India.

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