Nouriel Roubini: Public debt is rising the world over -- can bond vigilantes save the day?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Rising public debt and budget deficits in advanced economies are rattling global markets.
- ✓Nouriel Roubini said, "Only fiscal discipline and higher potential growth driven by technological innovations can make debt sustainable." While some nations use assets to manage debt, many ageing societies face hidden liabilities that make situations worse.
Story at a Glance
- Category
- MARKET
- Reported By
- mint
- Reading Speed
- 6 Minute(s)
- Market Focus
- India Economy
Summary
Governments may attempt gimmicks to avert a debt crisis, but ultimately only fiscal discipline and higher potential growth driven by technological innovations can make debt sustainable. Can we pin our hopes on bond markets to force fiscal prudence?
Large, growing budget deficits and rising public debt-to-gross domestic product (GDP) ratios in advanced economies are rattling markets. With interest rates on government debt having gone from near zero (and even negative, in some cases) to much higher levels, rising short- and long-term bond yields have cast doubt on the sustainability of some public debts and led many to ask if a crisis might be looming.
Unlock the Full Story with ArthNow Premium
To continue reading this complete financial story and in-depth market context, upgrade to ArthNow Premium. Enjoy unlimited access across Web and Mobile.
mint
Read the full, original unfiltered story directly on the publisher's portal.