How to manage the public debt?
Public debt ratios in OECD countries are now extremely high. Moreover, the need for public spending is going to be very high in the future (industrial reshoring, energy transition, healthcare, education, poverty reduction, etc.), so public debt ratios are likely to continue to rise. At best, additional potential growth may begin to reduce them in the medium term . So how can a public debt crisis be prevented? By getting central banks to never sell the government bonds they have bought and to roll them over at maturity; By keeping interest rates forever lower than the growth rate (which would be difficult for Italy) and by accepting the resulting permanent taxation of savers; By preventing the excessive increases in asset prices that normally result from below-growth interest rates through strict macroprudential policies (e.g. taxation of short-term capital gains).