Researchers at the IMF have called for governments to adopt a more nuanced approach to tackling large stocks of public debt, warning of the dangers of “knee-jerk” fiscal consolidation in a staff discussion note published today (June 2).

“It is a controversial and relevant issue,” noted Jonathan Ostry, deputy director of the IMF’s research department and one of the paper’s authors, in a conference call with journalists.

Ostry was cautious about citing specific examples, but the often bitter