Benefits and costs of debt : the dose makes the poison / M. Ayhan Kose, Franziska Ohnsorge, Naotaka Sugawara
Contributor(s): Resource type: Ressourcentyp: Buch (Online)Book (Online)Language: English Series: World Bank E-Library Archive | Policy research working paper ; 9166Publisher: [Washington, DC, USA] : World Bank Group, Prospects Group, February 2020Description: 1 Online-Ressource (circa 39 Seiten) : IllustrationenSubject(s): Genre/Form: Additional physical formats: Erscheint auch als: Benefits and Costs of Debt: The Dose Makes the Poison. Druck-Ausgabe Washington, D.C : The World Bank, 2020DOI: DOI: 10.1596/1813-9450-9166Online resources: Summary: Government debt has risen substantially in emerging market and developing economies (EMDEs) since the global financial crisis. The current environment of low global interest rates and weak growth may appear to mitigate concerns about elevated debt levels. Considering currently subdued investment, additional government borrowing might also appear to be an attractive option for financing growth-enhancing initiatives such as investment in human and physical capital. However, history suggests caution. Despite low interest rates, debt was on a rising trajectory in half of EMDEs in 2018. In addition, the cost of rolling over debt can increase sharply during periods of financial stress and result in financial crises; elevated debt levels can limit the ability of governments to provide fiscal stimulus during downturns; and high debt can weigh on investment and long-term growth. Hence, EMDEs need to strike a careful balance between taking advantage of low interest rates and avoiding the potentially adverse consequences of excessive debt accumulationPPN: PPN: 1700767062Package identifier: Produktsigel: ZDB-110-WBL | ZDB-1-WBA | ZDB-110-WBONo physical items for this record
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