Public Debt / The situation has been far worse after WWII

Job Market Monitor

Figure 1 provides a broad historical perspective of debt developments in advanced, emerging, and low-income economies. Debt levels in advanced economies (now the G20) averaged 55% of GDP over 1880–2009, with a number of peaks and troughs that correspond with key historical events along the way.

– During the first era of financial globalisation (1880–1913), debt ratios trended down as public finances were, for the most part, under control, and growth was supported by an unprecedented level of gold standard-enabled financial and trade flows. Debt ratios reached their lowest level – 23% of GDP in advanced economies – in 1914, when the First World War began.

– But war and the fiscal crises that followed, the Great Depression (early 1930s), and World War II (1941–45) drove debts upward (to almost 150% of GDP in 1946).

– By 1960, however, debt ratios had declined to 50% of GDP on the back…

View original post 85 more words

Advertisements

About Standard Climate

Interested in all things about the Planet.
This entry was posted in McSafavi. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s