The rich world faces a brutal spending crunch

From The Economist

How long can the firehose keep blasting? At first glance, it looks like it could keep going for a while. Markets have gone on a tear, which will boost tax receipts. And a government’s debt sustainability does not change solely owing to what happens to the budget deficit. It is also a product of overall public debt, economic growth, inflation and interest rates. Since the end of the pandemic, inflation has been high and growth has been solid. Although rates have risen, they remain fairly low by historical standards.