Debtor nations face ‘long-term pain’, BdF research finds

Debt

Debt issued by France and the US under high inflation and interest rates means the countries will go from “short-term gain into long-term pain”, new research argues. 

Higher inflation and rates from 2021 to 2022 had a positive short-term impact on the countries’ net international investment position (NIIP). Rising inflation cut the value of their external liabilities, note Bruno Cabrillac, Valérie Chauvin and Julia Schmidt, in a Banque de France working paper. 

However, events since 2021 will

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