Go out there and spend. Dont worry about the build up of debt. You will be making a mistake if you remove support for your economies too soon. Thats the message from Kristalina Georgieva, the managing director of the International Monetary Fund, to finance ministers as they contemplate how to deal with the economic damage caused by Covid-19.
Well, some of them at least. Finance ministers such as Rishi Sunak are certainly getting the green light to spend more. Thats the right advice and it should be heeded, not least because ultra-low interest rates mean debt servicing costs are going down even as borrowing goes up.
The IMF takes a tougher line with those countries that may seek emergency bailouts. The government of Argentina, for exampl…
Read the full article at: https://www.theguardian.com/business/2020/oct/14/imf-right-about-keeping-covid-support-going-but-on-debt-relief-its-crumbs