Home › Forums › Financial Markets/Economics › Recession 2020 › At the moment, no. The market
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At the moment, no. The market doesn’t see deficit spending as impacting long term interest rates. So it’s unlikely deficit spending will cause a recession.
But, it may be a problem once we’re in a recession or in the post-recession phase. But, if you look at Japan, high debt hasn’t been a problem for borrowing rates yet they are at 250% of GDP. http://si.wsj.net/public/resources/images/B3-BM176_Dshot_NS_20180821014327.png
