Sovereign Debt Crisis Deepens Due to Regulatory Frameworks, Mises Institute Reports

A report published on June 6, 2026, by the Mises Institute argues that the affordability crisis is fundamentally a sovereign debt problem, exacerbated by existing regulatory frameworks. The report highlights how sovereign debt is shielded from market discipline through Basel capital frameworks and liquidity coverage mandates, with regulation further compounding the issue. This structural bias towards expansion, where crises lead to interventions that are never fully reversed, results in a higher institutional baseline of debt and uneven distribution of monetary expansion gains, ultimately impacting household budgets.