Fiscal Policy for an Uncertain World by Vitor Gaspar, Sandra Lizarazo, Paulo Medas, and Roberto Piazza published by IMF (10/ 2021)
“As public debt rises to record levels, countries need to calibrate fiscal policies to their own unique circumstances.
Vaccination has saved lives and helped economic recovery in many countries, but uncertainty remains high amid new virus variants. The pandemic will leave a lasting mark on inequality, poverty, and government finances, our latest Fiscal Monitor finds.
With the pandemic, global debt in 2020 jumped by 14 percent to a record high $226 trillion. This figure includes both public and nonfinancial private sector debt. The latter will need to be monitored carefully, as excess private debt can eventually turn into higher public debt…”
