Published on 18 December 2020
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Low growth threatens public debt sustainability: A sustainable fiscal stimulus is essential

Aiming to balance budgets prematurely, after such a traumatic economic shock, is likely to prove self-defeating, writes Dimitri Zenghelis in his article for Forbes, cautioning against economic austerity in post Covid-19 times.

Further public spending will be necessary to build a post-Covid-19 economy that is inclusive, resilient and sustainable. This spending must boost productive capacity, secure sustainability and provide a short-term economic stimulus to offset the paradox of thrift caused by retrenched spending by nervous consumers and investors.

Dimitri Zenghelis


The views and opinions expressed in this post are those of the author(s) and not necessarily those of the Bennett Institute for Public Policy.

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