The coronavirus will leave in its wake a sharp rise in public sector debt. Low interest rates suggest that many governments will be able to live with this, rather than having to resort to austerity, default or inflating the debt away. But they would still be wise to reassure financial markets that they will return debt to a sustainable path. And there are some countries where the debt dynamics are less favourable. They will have to reduce debt in one of the other potentially more painful ways.
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