2min chapter

GZERO World with Ian Bremmer cover image

Fix the global debt crisis before it's too late, warns World Bank's David Malpass

GZERO World with Ian Bremmer

CHAPTER

The Importance of Monetary and Fiscal Policy

Governments borrowing the next generation's worth of capital and spending it now is not wise. Central banks should own T-bill short term assets as part of monetary policy, he says. But right now they've become the world's biggest investor with a huge duration mismatch. We need to get out of this situation - we are seeing every day that the US doesn't have a workable debt limit.

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