Episode 13: The Covid-19 Debt Crisis

Economists around the world are being kept awake at night by the financial implications of COVID-19. Public debt in emerging markets has surged to levels not seen in 50 years and many countries are having to take on more and more debt in an effort to control the pandemic. Today on the Agenda Podcast we look at  possible solutions. To get a broader understanding of the Covid-19 debt issue Stephen spoke to international sovereign debt advisor Lee Bucheit. 

Lee explains why the current debt situation is “unprecedented” and why what we’re seeing now is the “bleakest picture” of the international economy he’s ever seen [06:04]. Lee also explains how financial institutions printing more money could be a short-term solution, but that it might lead to problems in the future [03:37]. 

We also talk to Zhang Jianping, Director General of the Chinese Academy of International Trade and Economic Cooperation, to find out what lessons the rest of the world might learn from the Chinese economic approach. Jianping explains that every country needs to look at making a careful assessment of its fiscal policy when responding to the Covid-19 crisis [09:17]. He also tells us why international cooperation is critical and why no country can beat Covid-19 on its own [12:07].