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How to Prevent the Looming Sovereign-Debt Crisis (Project Syndicate, 8 min read) Joseph Stiglitz highlights how around 100 low- and middle-income countries have to pay a combined $130 billion in servicing debt. But with COVID, this may prove hard to do, so a global debt crisis could be looming. He argues for voluntary debt buybacks, which worked for Latin America in the 1990s and Greece more recently. [Bearish EM frontier debt]
Economic Consequences of High Public Debt: Evidence from Three Large Scale DSGE models (ECB, 26 page read) ECB wades into the fiscal debate. They simulate the effects of high public debt levels and find that economies lose more output in a crisis, spend more time at the ZLB, face a crowding out of private debt, and have less scope for countercyclical fiscal policy among other issues. Essentially, it argues for greater EU fiscal risk sharing.