Navigating the Debt Legacy of the Pandemic

Year
2021
Type(s)
Author(s)
M. Ayhan Kose, Franziska Ohnsorge, and Naotaka Sugawara
Source
Brookings Institution Future Development blog, October 20, 2021
Url
https://www.brookings.edu/articles/navigating-the-debt-legacy-of-the-pandemic/

COVID-19 has left a legacy of record-high debt and shifted the trade-offs between benefits and costs of accumulating government debt. How do these trade-offs manifest themselves? And how does the current debt boom compare with previous episodes? We argue that the debt legacy of the pandemic is exceptional by historical standards in a way that warrants prompt policy action.