Report
In OECD countries, a public debt crisis can only be triggered by countries that do not control their interest rates, such as Italy
Since the crisis , the public debt ratio has risen in all the large OECD countries except Germany and Sweden . There is often concern about the risk of a public debt crisis breaking out. But central bank s have the ability to keep long- term interest rates lower than the growth rate, which prevents debt crises, or makes them possible only if central banks accept them , which is very unlikely . But there is an exception: the euro-zone countries that do not control their interest rates, since there is no national central bank . In Italy , the long- term interest rate has now risen above the growth rate , without the ECB being able to react, and there may be a debt crisis.
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Patrick Artus
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