The 26 poorest nations in the world are more heavily in debt than any time in the last 18 years, according to a new report. Climate change and conflict are major drivers of poverty in the affected countries.
The World Bank published a new study late on Sunday highlighting 26 countries that “are in deeper debt than at any other time since 2006.”
The list includes Afghanistan, Yemen, Syria, and North Korea. Most of the other nations are in sub-Saharan Africa, and include Ethiopia and Chad.
With an annual per capita income of less than $1,145 (€1,050) a year, the World Bank said these countries “are poorer today on average than they were on the eve of COVID-19,even though the rest of the world has largely recovered.”
MMT would claim rather simply that the debt can be paid back by printing more money. More money in the system means more people are employed. If you have full employment, more money leads to inflation and to fight inflation governments need to raise taxes, to take money out of the system. Obviously taxes can not be raised to infinity.
So no MMT does not claim the US can just borrow money without long term costs.