Soaring public debt in developed economies is stress-testing global financial marketsExecutive summary: Developed economies are reaching public debt levels comparable to those seen during World War II, as highlighted by recent reporting. High debt burdens test investor confidence and may increase borrowing costs for governments and the private sector. Governments, central banks, investors, and rating agencies are the principal actors. Markets are expected to monitor fiscal policies closely, with potential for greater volatility in sovereign bond yields.Developed economies are accumulating public debt levels reminiscent of the World War II era, while central banks assess their policy options. This debt accumulation is prompting heightened scrutiny from investors and rating agencies. The situation reflects a broader shift in fiscal dynamics that could affect borrowing costs and market stability.Connected developmentsInflation management without raising ratesHousing market stress and middle-class displacementOpen the full case file on Beyond →
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