Darden: Government Debt During Crisis -- The Pandemic and Credit Risk

 By SIMON CONSTABLE

Over the past decade, economists such as Nobel laureate Paul Krugman have increasingly urged countries to embrace more government borrowing. But recent experience from the COVID-19 pandemic shows that too much debt can be a significant problem. New research shows that specifically during periods of crisis, nations with stretched finances will more than likely be penalized by financial markets and see their borrowing costs rise. The findings have significant implications for global policy. Read more here.