Last year, the global economy placed high expectations on China's reopening after the Zero-Covid period, which would revitalize global trade activities and reduce inflation (due to normalized trade reducing commodity prices). But in reality, China's economy is currently entering a cooling period with the real estate market frozen for nearly 2 years and consumption-investment demand collapsing.
Meanwhile, last week, the US, Europe, and Japan markets witnessed government bond yields continuously rising, exacerbating the public debt burden. The possibility of sovereign default, previously only seen in less developed countries, is now looming over the world's leading economic powerhouses.
So what impact does the public debt crisis have on the economy?
