The International Monetary Fund (IMF) projects that as a consequence, public debt ratios will most likely increase from around 70 per cent of GDP to average approximately 110 per cent of GDP in 2014.
While credit standing, funding conditions, and thus the degree of vulnerability vary across countries, we have to remind ourselves that not too long ago, a debt to GDP ratio in excess of 60 per cent was viewed to be bordering on fiscal irresponsibility, much as we are facing exceptional circumstances that require exceptional solutions.