World piling on debt as it battles inflation
… many governments have adopted subsidies or tax breaks to shield households and businesses from the soaring prices.
Yet the handouts are boosting already high government debt just as borrowing costs are rising. For some countries, the increase may prove too much to afford, raising the specter of political unrest.
Subsides “might support consumer confidence in the short term, but they also prevent healthy adjustments in the economy,” deterring companies and consumers from adjusting to economic shifts, said Joerg Kraemer, chief economist at Commerzbank in Frankfurt.
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https://banglabazarnews.com/2022/04/04/the-world-is-piling-o…