The Federal Reserve building is pictured on Tuesday August 6, 2019.
Caroline Brehman | CQ-Roll Call Group | Getty Images
The economic meltdown brought on by the coronavirus pandemic has governments deploying historically vast fiscal spending packages to support millions of their citizens and businesses.
This spending is necessary to support economies — officials agree on that much. But the debt incurred over time could mean a deeper crisis and a doubled-down recession for some countries, according to recent reports.
“Debt crises may be coming,” the Economist Intelligence Unit (EIU) wrote in late March. “For now, governments are ramping up fiscal spending to fight the epidemic, maintain basic economic architecture and keep workers in their jobs. As a result, fiscal deficits will rise sharply in the coming years.”
Already in early January, before any country imposed coronavirus lockdowns, the World Bank warned of the risk of a fresh global debt crisis. It described the current…