In most economies worldwide, industrialized or emerging, economic growth is being undermined by high debt. It is not the case for all, but we can say that the causality is in this position. (debt which leads to high growth and high debt that undermines economic growth).
The tools available in order to come out of recession is varied and diverse; for that -no simple objective-. So we have a list of instruments from we can underline the following:
- Austerity programs with structural reforms (changes in taxes, regulations and labor market policies).
- Fiscal stimulus.
- Debt restructuring of public and private debts.
- Monetary expansion.
It is in the combination of these, policy mix, and other instruments; that expertise, and necessary reforms are missing. Leadership and political audacity to gain support for a common view is of great importance.
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