Reinhart, Carmen M.; Sbrancia, M. Belen - Bank for International Settlements (BIS) - 2011
interest rates, regulation of cross-border capital movements, and (generally) a tighter connection between government and banks … rapid reduction in public debt/GDP ratios from the late 1940s to the 1970s. Low nominal interest rates help reduce debt … servicing costs while a high incidence of negative real interest rates liquidates or erodes the real value of government debt …