Global sovereign debt now higher than post-WWII; IMF says situation is 'worrisome' - KOKH
Global sovereign debt now higher than post-WWII; IMF says situation is 'worrisome' - KOKH
Source: KOKH
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DW NOTE
The IMF's alarm about sovereign debt levels comes seven months into a Strait of Hormuz blockade that has cut global oil supply by 6%, while fiscal deficits widen and central banks raise rates into a supply shock. The post-WWII comparison is apt: then, as now, governments financed extraordinary spending by debasing the bond stock, and the bill came due over decades. The difference is that WWII debt was incurred to end a war, not to manage the economic fallout from one that continues unabated.