In this episode, Michael Taylor and William Clouston discuss UK public debt.
At the end of May, public sector net debt exceeded 100% of GDP for the first time since 1961.
A staggering 40% of this debt is due to the short-term funding of Covid borrowing, which Michael calls ‘the most expensive blunder in the history of British government finance’.
William and Michael discuss whether our increasing debt-to-GDP ratio should be cause for concern or whether global economic growth will enable us to avoid financial ‘doom loops’.
Links to Michael’s articles on the short-term funding of Covid debt: