Building toward crisis in the global economy—again

.

Chapter 32 in All Fall Down, 2018, pp 219-223 from Edward Elgar Publishing

Abstract: Debt in relation to GDP remains at historically high levels in the US and many other economies. Moreover, in the case of the US, the gap between what its residents own abroad and the holdings of its assets by foreign residents widened to 43 percent of GDP at year-end 2016 as ongoing US trade deficits continued to be financed by foreign savings. America’s high level of external debt makes it increasingly vulnerable to loss of confidence in the dollar as the key currency given that rising debt in the household and business sectors threatens to lower the level of growth on which that confidence depends. The drag of continued high levels of debt and rising instability in financial markets suggest that yet another crisis may hasten the need for emergency responses to bring about the monetary and regulatory reform required to restore stability in the global system.

Keywords: Economics and Finance; Politics and Public Policy (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.elgaronline.com/view/9781788119481.00047.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:18346_32

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().