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Yes government debt is cheap, but that doesn't mean it comes risk-free

  • Written by Tony Makin, Professor of Economics, Griffith University
Yes government debt is cheap, but that doesn't mean it comes risk-freeRost9/Shutterstock

The financial response of Western governments to the COVID-19 crisis has been gargantuan, with boosts to health expenditure, enhanced JobSeeker-like payments, and JobKeeper-like wage subsidies to keep workers attached to jobs.

While a strong response has been necessary, it has come with costs.

These have been huge budget deficits...

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