21 March 2019 / Global
Next financial crisis may eclipse 2008
It is difficult to forecast when the next global economic recession will happen. It is much easier to predict its severity. Among the more disturbing vulnerabilities of the global economy is the large amount of debt spawned by the years of ultra-unorthodox monetary policy conducted by major central banks in advanced economies. According to the IMF, the global debt to GDP level is 250% – around 30 percentage points higher than it was on the eve of the 2008 financial crisis, and the mispricing of global debt has become much more pervasive.