Barry Eichengreen, a professor at the University of California, Berkeley, said at the 9th Asia-Pacific Economic and Financial Forum that at the current rate of economic growth in the United States, there is no debt sustainability problem in the United States.
An important reason is that the Federal Reserve has sustained interest rates. Hold it low.
In contrast, he believes that emerging markets should pay more attention to the issue of sovereign debt.
One of the reasons is that interest rates in emerging market countries are generally high, and on the other hand, the debt of these countries has been increasing.
At the peak of the global coronavirus epidemic in March, some analysts predicted that there would be a large-scale sovereign debt crisis, but this has not happened so far.
Aikengreen said that one of the reasons is that the Federal Reserve has implemented expansionary monetary policies, allowing capital to return to emerging markets and allow emerging market countries to issue bonds.