On Public Debt Sustainability
Both, the 2009 financial crisis and the COVID-19 pandemic have created a significant increase in major economies’ public debt. Exceptionally large fiscal support programs have been launched and they are being coupled with large purchases of sovereign bonds by central banks. These developments have raised fears of debt default and/or major inflation episodes.
In this session we will discuss the implications of these policies for global stability, and what are the potential exit strategies for the debt-overhang.
Prof. Jordi Gual, Economics, IESE
Prof. Pedro Videla, Economics, IESE