The weak economic recovery is likely to increase the debt burden of many advanced economies, including the United States, Britain, Japan and several euro zone countries, writes former White House economist Nouriel Roubini.
In his weekly column in Forbes, along with his collaborator, Arpitha Bykere, a research analyst, Roubini, now a professor of economics at New York University, said that the decisions by governments in 2008 and 2009 to do "whatever it takes" to be a backstop their financial systems and keep their economies afloat temporarily eased investor concerns.
“But if countries remain biased toward continuing with loose fiscal and monetary policies to support growth, rather than focusing on fiscal consolidation, investors will become increasingly concerned about fiscal sustainability and gradually move out of debt markets they have long considered safe havens,” writes Roubini. (more)
No comments:
Post a Comment