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Central banks weigh monetary policy under high public debt

Original: Monetary policy in times of high public debt

Economists at the Centre for Economic Policy Research and the European Central Bank are examining how monetary policy should operate when public debt levels are elevated. The debate centres on whether high debt constrains central banks' ability to fight inflation, and how interest rate decisions interact with fiscal sustainability across advanced economies.

Why now: High inflation and record public debt levels have reignited debate over the trade-off between price stability and fiscal sustainability

European Central BankCentre for Economic Policy Research

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