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With a more relaxed attitude towards the sustainability of public finances which has increasing support from some corners of economics, how worried should investors be that public finances become unsustainable and ratchet up interest rates?
The past decade has gone through bizarre swings in public perceptions about the dangers of public deficits and debts. From hyper-nervousness in the beginning of the decade to the relaxed attitude today, a really remarkable turnaround.
Much of this is down to politics, but there are some changes in economics behind this turnaround as well.