The World Bank has warned that a massive debt wave is building worldwide.
NEW YORK - Over the last decade, the world economy has experienced a steady build-up of debt, now amounting to 230% of global GDP. The last three waves of debt caused massive downturns in economies across the world.
The World Bank has just warned us that a fourth debt wave could dwarf the first three.
As in the previous cases, the debt wave has been facilitated by low interest rates.
There are several countries that fit this description and run the risk of being the conduit that carries the fourth debt wave to the world economy.
In the 1980s, India's economy was fairly sheltered, so the debt wave back then had little impact.
Managed properly, this can boost demand without increasing inflationary pressures, and strengthen the economy in order to withstand a debt wave.
https://www.project-syndicate.org/commentary/approaching-debt-crisis-vulnerable-britain-and-india-by-kaushik-basu-2020-01
NEW YORK - Over the last decade, the world economy has experienced a steady build-up of debt, now amounting to 230% of global GDP. The last three waves of debt caused massive downturns in economies across the world.
The World Bank has just warned us that a fourth debt wave could dwarf the first three.
As in the previous cases, the debt wave has been facilitated by low interest rates.
There are several countries that fit this description and run the risk of being the conduit that carries the fourth debt wave to the world economy.
In the 1980s, India's economy was fairly sheltered, so the debt wave back then had little impact.
Managed properly, this can boost demand without increasing inflationary pressures, and strengthen the economy in order to withstand a debt wave.
https://www.project-syndicate.org/commentary/approaching-debt-crisis-vulnerable-britain-and-india-by-kaushik-basu-2020-01
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