On the Chinese Wall of Steroids: Imbalances and Asymmetries
By John E. Charalambakis Ph.D., Managing Director
In a recent study by the McKinsey Institute total credit market debt in China is shown as the largest in the world, and that is only what we know of. The dangers are not limited just to China but are extended to the global financial system. In a world where financial institutions are interconnected and where credit flows create a maze, the overextension of credit in an economy endanger the global financial architecture with a hard landing that could quickly unravel the real economies due to the size of leverage that all leading countries have accumulated in the last 15 years.
The views expressed on austriancenter.com are not necessarily those of the Austrian Economics Center.
Do you like the article?
We are glad you do! Please consider donating if you want to read more articles like this one.
Warning: Undefined array key "visual_appearance" in /austriancenter.com/subdomains/www/html/wp-content/plugins/give/src/Views/Form/Templates/Classic/Classic.php on line 203
Comment
|
May 20th, 2015
On the Chinese Wall of Steroids: Imbalances and Asymmetries
In a recent study by the McKinsey Institute total credit market debt in China is shown as the largest in the world, and that is only what we know of. The dangers are not limited just to China but are extended to the global financial system. In a world where financial institutions are interconnected and where credit flows create a maze, the overextension of credit in an economy endanger the global financial architecture with a hard landing that could quickly unravel the real economies due to the size of leverage that all leading countries have accumulated in the last 15 years.
Read More
The views expressed on austriancenter.com are not necessarily those of the Austrian Economics Center.
Do you like the article?
We are glad you do! Please consider donating if you want to read more articles like this one.
Warning: Undefined array key "visual_appearance" in /austriancenter.com/subdomains/www/html/wp-content/plugins/give/src/Views/Form/Templates/Classic/Classic.php on line 203
Related
Comment
Classical Liberalism and Effective Altruism
January 25th, 2021
Comment
Russia and Turkey after the coup
August 2nd, 2016
Comment
Employment Does Not Drive Economic Growth
February 20th, 2015
Comment
The Laffer Curve: Will Tax Cuts Pay for Themselves?
December 4th, 2014
Comment
European Fascism Is Different This Time, Says the New York Times
November 15th, 2013
Sendinblue Newsletter