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Public debt and the post-growth challenge: the case for a flexible monetary and fiscal policy framework
The transition to what has been called a ‘post-growth’ economy in advanced economies could lead to an uncomfortable policy choice between a fiscal contraction and a spiralling public debt-to-GDP ratio. This choice is particularly severe in the context of various long-term structural issues such as demographic change, geopolitical uncertainty and the costs of mitigating (or adapting to) climate change—all of which are expected to place significant pressure on the public finances. […]