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Investors eye rising debt risks

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Investors refocused on highly indebted governments as higher borrowing costs, refinancing needs and conflict-driven energy inflation heightened global debt risks.

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Government consumption generally depresses economic growth more severely than public debt, though optimal fiscal constraints depend fundamentally on a nation's trade openness, inflation, and financial depth. doi.org/10.1111/rode.12661
October 12, 2026 at 4:00 PM
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(6/10) And fiscal responsibility can come with its own growth enhancing effects, including lower interest rates, helping both government budgets and households’ bottom line (due to lower mortgage payments, e.g.).
budgetlab.yale.edu/research/imp...
The Impact of Deficits on Costs for Households
budgetlab.yale.edu
October 12, 2026 at 3:20 PM
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(3/) The corporate tax can also be a part of raising adequate revenue to deal with US fiscal imbalances, as I argue in a joint piece with Natasha Sarin out of @aspenecon.bsky.social.

www.economicstrategygroup.org/publication/...
$15 Trillion on the Table in 2029: Ordinary Taxes to Meet an Extraordinary Fiscal Moment • The Aspen Institute Economic Strategy Group
The US national debt passed 100 percent of GDP in March 2026 and is projected to reach nearly 130 percent by 2039. This worsening fiscal outlook comes at a time when income inequality remains high and...
www.economicstrategygroup.org
October 12, 2026 at 3:20 PM
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Reposted by Helen Miller

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"the single biggest factor in rising spending and growing deficits is actually the size of the national debt itself. Interest payments on the debt rose 11 percent in fiscal year 2026 and totaled more than $1.1 trillion."

Good long-term planning everyone. Well done.
October 12, 2026 at 11:50 AM

Reposted by Simon Lester

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Shocker: CBO data contradicts President Donald Trump's oft-repeated claim that tariffs are bringing in "trillions" of dollars for the United States.
buff.ly/ETIe4ZT
The federal government just posted the largest deficit since COVID
Tax revenue increased by about 3 percent last year, but spending increased twice as fast. And interest payments on the debt cost more than $1.1 trillion.
buff.ly
October 12, 2026 at 11:45 AM
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Reposted by Patrick Dunleavy

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"Energy price shocks and current account balances: Evidence from emerging market and developing economies" is available at Energy Economics: doi.org/10.1016/j.eneco.202...
October 11, 2026 at 10:30 PM
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JUST PUBLISHED: "Global versus Domestic Supply Chain Disruptions: Implications for Inflation and Economic Confidence" is published at International Finance: onlinelibrary.wiley.com/sha...

Working paper version is available at dx.doi.org/10.2139/ssrn.470...
October 11, 2026 at 7:00 PM