Patrick Artus wrote in Le Monde that budgetary rigour does not durably cut the public‑debt-to‑GDP ratio; only elevated inflation unaccompanied by higher interest rates could reduce debt, albeit at a steep political price. The analysis questions the effectiveness of austerity measures for debt sustainability, relevant for governments weighing fiscal consolidation versus growth and inflation trade‑offs. Economist Patrick Artus, French policymakers, taxpayers and savers exposed to inflation‑induced wealth effects. Ongoing policy debate may lead to reassessment of fiscal rules, greater scrutiny of inflation targets, and potential market reactions in government‑bond sectors. Economist Patrick Artus argues in Le Monde that fiscal tightening does not durably reduce the public‑debt ratio. He notes that only a period of high inflation not offset by rising interest rates could shrink the debt burden, yet such a policy would impose significant costs on savers and be politically costly. The piece highlights the limits of austerity as a debt‑reduction tool and invites debate on alternative approaches.
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