Part 13/15:

He points out that the trillions of dollars allocated worldwide in stimulus packages—often financed through borrowing—pose future risks. The debt incurred during this crisis may be paid for by future generations, especially as many of these debts are not explicitly backed by repayment plans. He stresses that such borrowing must be done judiciously, with a long-term view toward fiscal sustainability.

Deepening Debt and Future Challenges

Rajan raises concern that current borrowing levels may create a "debt hole" too deep to climb out of, especially with future challenges like climate change and demographic shifts. Many industrial nations have yet to fully fund their social security and retirement commitments, which could become unmanageable amid mounting debts.