Low interest rates can facilitate both deleveraging and borrowing: Who has made what choice?

Low interest rates pave the way for: A fall in the debt ratio due to a small savings surplus (for governments, a primary fiscal surplus), thanks to the fall in interest payments on debt; For the same reason, a rise in the debt ratio without jeopardising solvency. The reaction to low interest rates can therefore be either deleveraging or increased debt. The following OECD countries have chosen deleveraging: the United Kingdom, Germany, Spain and Italy; The following OECD countries have chosen borrowing: the United States, France and Japan.