Why we can delay but not escape the global economic crisis
SummaryUnsustainable debt pile-ups make stagflation hard to fight and a moment of reckoning inevitable.
The world economy is lurching toward an unprecedented confluence of economic, financial and debt crises, following the explosion of deficits, borrowing and leverage in recent decades. In the private sector, the mountain of debt includes that of households, businesses and corporations, and the financial sector. In the public sector, it includes central, provincial and local government bonds and other formal liabilities, as well as implicit debts such as unfunded liabilities from pay-as-you-go pension schemes and healthcare systems—all of which will continue to grow as societies age.