IMF warns bad political choices could trigger instability

Tobias Adrian
Tobias Adrian: "Credit booms this big can be dangerous"
IMF Staff Photograph/Stephen Jaffe

The global financial system looks sturdier than it did six months ago, but poor political choices could still destabilise the system, the International Monetary Fund (IMF) warned on April 19. The fund’s latest global financial stability report highlighted “elevated risks” in many areas, including high levels of Chinese debt, non-performing loans in Europe, and “stretched” valuation in parts of the US corporate sector. “Credit in relation to China’s economy has more than doubled in less than