ECB's Lagarde: Debt will massively increase because of the crisis, and has to be repaid

Author: Justin Low | Category: Central Banks

Lagarde reaffirms that government debt will eventually have to be repaid

No. Just no. Governments will never run surpluses just with a snap of a finger and what is happening to the world and their debt levels now is basically what we have seen with Japan over the past two decades.

If anything, lawmakers should take advantage of the low rates now to lock in debt maturities for the next 20-30 years. However, that is mainly just for the optics.

When the next crisis trugs along, we'll be back here talking about the same issue once again and the next set of policymakers will be telling us that "debt has to be repaid" still.

For bank trade ideas, check out eFX Plus
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose