October 24, 2018

The scars from the global financial crisis are still evident on public wealth a decade later (IMF)





Both sides of the balance sheet are important. Governments should consider the effect of policies on assets and non-debt liabilities, in addition to debt. This also applies to risk management, where valuation changes can have large wealth effects. 

Applying the same stress test that the Federal Reserve applies to banks would reduce US public sector net worth.