Dynamic Wealth Management Headlines: The great repression
http://www.
economist.
com/node/18834259?story_id=18834259&fsrc=rss
OF THE many unpleasant legacies left by the economic crisis the mountain of sovereign debt may prove
hardest to erode.
Across the...
More
Dynamic Wealth Management Headlines: The great repression
http://www.
economist.
com/node/18834259?story_id=18834259&fsrc=rss
OF THE many unpleasant legacies left by the economic crisis the mountain of sovereign debt may prove
hardest to erode.
Across the rich world, debt levels approaching 90% of GDP are now common.
Indebted
governments face an unenviable menu of options.
Growing their way out of trouble will prove difficult as
economies deleverage.
Austerity, a second and unappetising choice, can easily choke recovery.
Defaults
are seen as a last resort.
Politicians are searching for an easier way.
There is another model.
Following the second world war many countries reduced debt quickly without
messy defaults or painful austerity.
British debt declined from 216% of GDP in 1945 to 138% ten years
later, for example.
In the five years to 2016, by contrast, British debt as a proportion of GDP is expected
to drop by just three percentage points despite a harsh austerity program
Less
