The general government debt of AEs as a group has surpassed 100 per cent of gross domestic product (GDP), whereas the fiscal space is also constrained in many of these countries The global economy is moving into a “new and unsettling phase” where “solutions are turning more difficult to come by” in an environment of stressed trade negotiations, rising geopolitical confrontation, and limited policy space and high debt levels in several economies, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Friday. This has a negative connotation for emerging markets (EMs), as these are building up excessive leverage because of the low interest rates in the advanced economies (AEs). This is especially true in the absence of a strong global safety net such as currency swap arrangements between the AEs and the EMs. The general government debt of AEs as a group has surpassed 100 per cent of gross domestic product (GDP), whereas the fiscal space is also constrained in many of these coun