Category: Fiscal policy

According to the IMF, persistently high fiscal deficits can lead to a range of risks, from rising interest rates to financial crises, draining resources from the economy. Understanding what happens if the deficit is too high is crucial for grasping a nation's economic stability and long-term outlook.

According to a recent report from the Concord Action, sustained increases in the national debt will diminish the economic prospects of current and future generations. This alarming forecast raises a critical question for economists and citizens alike: Is a large deficit bad, or can it sometimes serve as a strategic economic tool?