Governments around the world have used near-free borrowing to suspend the laws of economics. One of those laws concerns whether a company can pay back what it owes. Liquidations are at very low levels, while corporate debt levels are at historic highs.  One of the most obvious consequences of Covid-19 was a sharp ramping up of corporate debt issuance as companies raced to increase liquidity as their revenues fell off a cliff. This build-up feels like an unsustainable process. What will happen to corporate debt when the Covid crisis ends? Wynne Godley is one of my intellectual heroes. In a…

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