Part 2: Financing the budget in the post-Corona world

26 August 2020
Event type: Dialogue
JEL Code: E40, E43, E52, F34, G1, H12, H20, H63, H68, O12, O19, O23, O4
Event date: 12 August 2020

Matthew delves into what financing the budget deficit in the post-Corona world means. Unprecedented deficits and debt levels are both the result of structural and COVID crisis related factors. Financing the budget deficit over the next few years poses a challenge that we have not faced in the democratic era, and raises a number of questions and concerns about sustainability and macroeconomic impacts:

  • Are the public finances facing a financing crunch?
  • How can the financing requirement be met?
  • What are the opportunities and limits of QE by the SARB?
  • Will we need more funding from the IMF?
  • What will the role of QE in advanced countries be?