Despite policy volatility and fiscal concerns, the U.S. safe-haven status has proven far more secure than expected; in a crisis investors gravitate to the United States, the dollar and U.S. Treasuries, so market signals are not forcing U.S. fiscal discipline.
After a synchronized global debt binge in 2020-2021, small economies that managed debt well, such as Switzerland and Sweden with debt-to-GDP around 30-40%, are the safe havens of choice for global markets.
After a synchronized global debt binge in 2020-2021, small economies that managed debt well, such as Switzerland and Sweden with debt-to-GDP around 30-40%, are the safe havens of choice for global markets.