Policymakers are gambling that they will be able to pay back the large increases in national debt accrued in response to the Covid-19 pandemic.
As Covid-19 brought economies to a standstill, many governments threw a lifeline to businesses and households in the form of fiscal support, but putting public debt back on a sustainable path is likely to mean higher taxes and less government spending in the future.
That was the message from an economist at the virtual Bermuda Captive Conference.
Henk Potts, director, investment strategy, at Barclays Private Bank, also said there could also be an acceleration in deglobalisation as a result of the health crisis.
Mr Potts said governments around the world had altered their fiscal policies to deal …
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