Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
What are the signs of a debt crisis within the G10 nations?

What are the signs of a debt crisis within the G10 nations?

101 finance101 finance2026/01/12 19:24
By:101 finance

Rethinking Debt Crises in Developed Nations

Many believe that advanced economies are largely shielded from debt crises due to the strong credibility of their monetary policies. This confidence stems from the idea that central banks can intervene—by creating money and purchasing government bonds—if borrowing costs rise sharply, all without unsettling inflation expectations.

However, I challenge this perspective for two main reasons. Firstly, when government debt reaches elevated levels, negative economic shocks can trigger sudden increases in yields. This happens because investors, acting logically, foresee expanding deficits and mounting debt. If central banks consistently intervene to suppress yields during such downturns, it eliminates the motivation for governments to...

1
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!
© 2025 Bitget