Detailed view for this entity.

“If we fast forward and say what would it look like over the next say seven years, we're projecting 100% of GDP, not more.”

“Now these types of levels of debt are only those that we've seen in during wars. So in peace time we we haven't seen these kind of levels of debt in the past.”

“one of the things that we found in in our research in fiscal affairs department was that there's sort of a longstanding pattern of political platforms supporting higher spending. In contrast to the 1980s where you sort of had this rhetoric of more restraint discourse in fiscal policy, we see this expansionary discourse taking root.”

“already when debt levels are really high there's a lot of pressure for monetary policy to accommodate and so this risk of fiscal dominance is something that worries us.”

“So there there are these really explicit tradeoffs that high debt levels generate. Take low-income countries. On average 21% or over 20% of revenues goes into paying interest. That means this money that could then have been used for education for health care for creating opportunities for your people is no longer there.”

“In our survey, we found that people who trusted their government or who reported trusting their government were 20% more likely to believe that their policies, their policy actions were actually going to help reduce and stabilize debt.”

“We found that it is possible to get buy in depending upon how you sequence it, what were the compensatory policies around this, how do you educate the public, how do you get buy in and it is possible to get these kind of reforms.”

“So if you ask people who are wealthy, who do you think that you believe there'll be an adjustment on on whom do you think taxes will be raised? they they point to the wealthy in corporations.”

“Fiscal policy is about, you know, distributing the costs across time, as you just said, and across different social groups and that trust is the currency that that makes that distribution politically feasible.”

“And if it's waste then why should I pay taxes? And and you see this in a lot of developing emerging market economies. You know, tax to GDP ratios are really low and it's really hard to mobilize revenues because you have massive corruption scandals and that sort of force people to think, well, you know, why would I pay my taxes if they're just going to be wasted in the first place?”

“I mean, I think it's important to understand that fundamentally there is a present bias in policym, right? I mean what happens five or 10 years down the line it's hard for for pol policy makers and also individuals to worry about right there's a present bias in the way we think about our lives.”

“In 2025, global debt to GDP was 93% of GDP. Right?”

“If we fast forward and say what would it look like over the next say seven years, we're projecting 100% of GDP, not more.”

“One of the things that we found in in our research in fiscal affairs department was that there's sort of a longstanding pattern of political platforms supporting higher spending. In contrast to the 1980s where you sort of had this rhetoric of more restraint discourse in fiscal policy we see this expansionary discourse taking root.”

“But for a lot of low-income and emerging market economies, there's another component to it. So take low-income countries. On average, 21% or over 20% of revenues goes into is is is goes into paying interest.”

“So for a lot of low-income and emerging market economies, there's another component to it. So take low-income countries. On average, 21% or over 20% of revenues goes into paying interest. So that means this money that could then have been used for education, for health care, for creating opportunities for your people is no longer there.”

“So in our survey, we found that people who trusted their government or who reported trusting their government were 20% more likely to believe that their policies, their policy actions were actually going to help reduce or stabilize debt. They were also more optimistic about how they were going to fare so their welfare as a result of these policies.”

“trust is the currency that that makes that distribution politically feasible. But as you also alluded to or even I mean as you said earlier that trust is is really at an all-time low.”

“you see this in a lot of developing emerging market economies. you know, tax to GDP ratios are really low and it's really hard to mobilize revenues because you have massive corruption scandals and that sort of force people to think, well, you know, why would I pay my taxes that they're just going to be wasted in the first place?”

“I think it's important to understand that fundamentally there is a present bias in policym right. I mean what happens five or 10 years down the line it's hard for for pol policy makers and also individuals to worry about right there's a present bias in the way we think about our lives”