Financial Times FT.com

Why dealing with the huge debt overhang is so hard

By Martin Wolf

Published: January 27 2009 19:38 | Last updated: January 27 2009 19:38

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How much debt is too much? Nobody knows. But the governments of highly indebted high-income economies – such as the US and UK – think they know the answer: more than today. They want even more credit to flow to their struggling private sectors. Is that an attainable ambition and, if so, how might it be achieved?

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