Cinzia Alcidi and Daniel Gros, (2019), “Public debt and the risk premium: A dangerous doom loop”, VoxEU, 23 May
The relationship between high public debt and low interest rates is once again at the forefront of debate.This column shows that countries with high debt levels pay a risk premium. This creates the potential for self-reinforcing loops of high debt and high risk premia, which can become explosive.
Relevant Posts
- Giancarlo Corsetti, Aitor Erce, Timothy Uy, (2019), «Official lending in the euro area: Lessons for debt sustainability «, 13 February, VoxEU
- Barry J. Eichengreen ; Asmaa A ElGanainy ; Rui Pedro Esteves ; Kris James Mitchener, (2019), «Public debt through the ages», IMF Working Paper No 19/6, 15 January