- The IMF has called on countries to spend as much as they can to protect the vulnerable and limit long-lasting damage to economies, stressing the need for spending to be well-targeted.
- In an earlier paper we showed that, provided fiscal space remains ample, countries should not run larger budget surpluses to bring down the debt, but should instead allow growth to bring down debt-to-GDP ratios organically.
- More recently, the IMF has stressed the need to rethink fiscal anchors - rules and frameworks - to take account of historically low interest rates.
For further details see:
A Future With High Public Debt: Low-For-Long Is Not Low Forever