Debt growth appears to be a better indicator that a crisis may be on the horizon than the actual level of debt, according to Bank of England (BoE) deputy governor Ben Broadbent.
“Even if they went into the 2008 crisis with relatively high levels of gearing, countries with below average growth rates of debt had a less severe experience after the event,” Broadbent said in a speech today (January 23).
High levels of debt might be concentrated in less risky areas, he said, and low interest rates
- St Louis Fed creates educational ‘multiplier effect’
- Podcast: North Macedonia on the brink of change
- ECB starts publishing senior officials’ declarations of interest
- The Belt and Road Initiative 2019 Survey – A new driver for globalisation?
- ECB and Banque de France to contribute to Notre-Dame repair fund