Easy does it
Monetary policy is the secret ingredient to bringing down debt ratios
POLITICIANS across the rich world are quarrelling over how to deal with public debt. Yet the most important actors in the drama may be unelected central bankers, according to a study by the International Monetary Fund, published in its latest economic outlook. The IMF looked at 26 episodes since 1875 when debt topped 100% of GDP, to determine how those ratios got back down.
This article appeared in the Finance & economics section of the print edition under the headline “Easy does it”
From the September 29th 2012 edition
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