Why dangerous debt dynamics aren’t catching up with economic policy
Global debt has reached a record high of US$318 trillion, raising concerns about dangerous dynamics in debt markets and the potential return of "bond vigilantes" who could pressure governments to be more fiscally responsible. This surge in debt, coupled with persistent inflation, poses a significant threat to the global economy, potentially overshadowing other crises.
The Institute of International Finance's recent report highlights that global debt increased by nearly US$7 trillion in 2024, pushing the global debt-to-GDP ratio up for the first time in four years. Simultaneously, equity markets seem detached from these economic realities, leading to questions about whether they have become too powerful and are now dictating, rather than reflecting, the course of economies.
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Global debt has reached a record high of US$318 trillion, raising concerns about dangerous dynamics in debt markets and the potential return of "bond vigilantes" who could pressure governments to be more fiscally responsible. This surge in debt, coupled with persistent inflation, poses a significant threat to the global economy, potentially overshadowing other crises.
The Institute of International Finance's recent report highlights that global debt increased by nearly US$7 trillion in 2024, pushing the global debt-to-GDP ratio up for the first time in four years. Simultaneously, equity markets seem detached from these economic realities, leading to questions about whether they have become too powerful and are now dictating, rather than reflecting, the course of economies.
via SCMP Full Text Feed
