Reported about 1 month ago
In an interview with Yahoo Finance, IMF chief economist Pierre-Olivier Gourinchas expressed concerns over elevated global debt levels, exacerbated by pandemic spending and energy crises tied to geopolitical events. He highlighted that high debt makes economies vulnerable to downturns, especially as investors demand higher interest rates and risk premiums. With the U.S. presidential election approaching, Gourinchas warned that fiscal policies could hinder efforts to stabilize inflation and return the economy to potential output.
Source: YAHOO