This is why countries with high debt are stuck in a 'doom loop'
The relationship between high public debt and low interest rates is once again at the forefront of debate. Evidence suggests that countries with high debt levels pay a risk premium.
Since 2009 Dr Cinzia Alcidi is Research Fellow at Centre for European Policy Studies (CEPS) within the Economic Policy unit. Before joining CEPS she worked as Teaching Assistant and Research Assistant at the Graduate Institute of International and Development Studies (GIIDS) of Geneva.