Should governments with low bond yields borrow substantially to kickstart the economy?

A well-written recent article on Slate points out that most governments today can borrow on their bond markets at incredibly low rates. The article goes on to suggest that what governments should do is to borrow substantial amounts to inject into the economy to kickstart growth. Forget about Italy, Spain and Greece, rates have never been so low for most countries, says the author. My question to people who know more about the ins and outs of the global economy would be: aren’t these low rates connected to the unsustainably high rates of major economies like Spain and Italy? Is there a message there from investors saying to other countries “if you do the same, you’ll end up like Italy and Spain”? Or is there really?


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