Isnt it enough to be a big debt to become a new normal fiscal cliff in various c

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Since the large -scale outbreak of the new coronary virus in Wuhan at the end of last year, it has swept more than 27 million infections worldwide and 890,000 people were killed.In order to stop the epidemic, governments have launched Draque -style severe drags such as feet, sealed city, and locking countries. The suspension of production and suspension caused the economic suspension. After ten years after the financial tsunami, the global economy has encountered the most serious economic recession since the Great Depression in 1929.In order to save the economy of the economy, it has also launched astronomical numbers to stimulate economic solutions, and the tightening policy of a decade ago.When government expenditures expanded and fiscal deficit, when the debt cliff climbed again, the economics community was far from worrying about ten years ago. Is the economic model of future money?

Modern countries have borrowed foreign debt to deal with the government's fiscal expenditure for hundreds of years. At the end of the Napoleonic War in 1815, British foreign debt was 164%of its national GDP.%.In order to cope with economic reconstruction after the war, countries continued to issue bonds to be released in the market, and the local West was the peak of Keynesianism.British economist Keynes put forward the economic development model of demand during the Great Depression, providing the government with financial and monetary policies to provide a foundation for financial and monetary policies to subvert the traditional liberal economic theory at that time.

The one with the most debt in the United States

However, Keynesianism was also criticized for stagnant inflation in the 1970s. At that time, Chicago, led by the University of Chicago, and scholars led by scholars such as Fuli Min, proposed that the market was free, the government strictly observed fiscal discipline, and the country's new freedom to reduce debt scale.Doctrine.New liberals say that too much government debt has caused a large amount of hot money to flow into the market and leads to rising prices.However, in 2008, the global financial tsunami caused by the Wall Street stock disaster forced countries to reinterpret debt. The scale of national bonds that have developed countries has risen from 74%in 2007 to 105%in 2017. Developing countries also.From 35%to 48%in ten years.

In order to curb the continuous rise in national debt, the state's finances turn their losses as soon as possible, and governments have therefore introduced severe tightening policies to significantly reduce national expenses such as education, medical care, houses, welfare, and public services.The populist trend of anti -establishment of various countries has risen, the Brexit referendum, the rise of the United States Trump, and the increasingly fragmented politics in Europe, all of which are sequelae.However, in 2014, the economics community also achieved almost consensus. When the country fell into a decline, the policy of tightening was tightened. The economic continuous weak tax revenue reduced greatly, which was not only beneficial and harmful to the economic recovery.

Before 2019, Olivier Blanchard, chief economist of the International Monetary Fund before 2019, proposed for the first time proposed that the government borrowed a large scale compared to imagination.The economic growth of various countries has continued to rise. If the government has successfully maintained economic growth, its theoretically, it should eventually resolve the debt crisis.When the economics community is still digesting this theory, a global epidemic has put the theory of Brownian in practice, and countries have borrowed a lot of debt. For example, the United States has bonds from April to June.The US dollar is the one that has the most debt events in history.

Where does money be used after debt?

The global epidemic forced countries to throw out hundreds of billions of stimulating economic solutions, and it is inevitable to raise debt to this.Even the EU countries, which have been arguing endlessly, have finally conceded their fiscal countries, and finally issued euro bonds to support economic measures to support poor member states.The governments of various countries have used huge investment target industries to stimulate demand and maintain employment rates. They also have the shadow of Keynes.What is important is that the resources can be allocated into the hands of people in need after debt issuance, rather than a tool that has become accumulated in corporate capital.However, developing countries that have been hit with the epidemic, because their economic strength and credit rating are weak, and bonds are more difficult than those who have developed countries. It is more unequal to the economy after immunization.Ausion.

As for the long -term Hong Kong of the Chicago school, such as Flimin and Zhang Wuchang, the small markets of small markets have penetrated into the bone marrow special zone government, and the measures of stimulating the economy in this epidemic are slow and passive, with insufficient scale, efficiency, and effects.After the government's fiscal deficit recorded 183.7 billion yuan in the first four months, it even caused concerns from all walks of life.However, Hong Kong's finances are extremely stable. Its foreign debt is only 0.1%of the total national GDP, and the fiscal reserves still have more than 800 billion yuan, and the outside world seems to be worried.Whether Hong Kong can turn into a profit always depends on the speed and amplitude of the future economic recovery, and this is that politicians cannot stand by.