macro-economic risks

Warning: Food Prices And The Link To Sovereign Credit Risk

We are having to learn to think faster about connecting up the dots between climate and risk, and what it all means for each and every one of us – and for business, investors, credit rating agencies, banks and governments. A report launched in London today at the offices of S&P Global Ratings looks at [...]

Surging private debt threatens Asia’s public debt sustainability

Across a host of Asian countries, private debt has been rising at a fast clip. And past experience has shown, again and again, just how quickly the bursting of a privately leveraged boom cycle ends up weighing on national budgets and public debt.

Source:  Asian Development Blog, 2016/05/17

‘Double debt bind’ can only be lifted with growth and inflation

Austerity nations are among the least successful in preventing debt from rising, especially the UK

Source:  FT, 2016/05/17

Why euro debtors are still sinning

Mounting debt burdens are the scourge of the eurozone, so we are often told.

Source:  FT, 04/05/2016

It’s time to wean global economy off all that ‘helicopter money’

The resort to helicopter money would be “desperate”, Reserve Bank governor Glenn Stevens said in New York this week, adding “it would be a lot easier to start doing helicopter money than to stop, if history is any guide”.

Source:  The Australian, 2016/04/22

Eurozone Escaped From Deflation in March

The eurozone’s latest encounter with deflation has proved to be briefer than first thought, with revised figures for March recording that consumer prices were unchanged compared with a year earlier.

Source:  WSJ, 2016/04/14

IMF: Public Debt at Highest Point in 70-plus Years

Public debt has soared throughout the world's advanced economies to the highest levels since World War II, the International Monetary Fund warned Wednesday, with many governments facing weak growth and declining prices for such commodities as oil and metals.

Source:  Voice of America, 2016/04/13

IMF warns world economy growing too slowly

The “increasingly disappointing” world economy is facing the threat of a “synchronised slowdown” and mounting risks including another bout of financial market turmoil and a political backlash against globalisation, the International Monetary Fund has warned.

Source:  FT, 2016/04/12

Drought Pushing SA to the Brink of Recession- Moody’s

South Africa's worst drought on record risks tipping an already weak economy into recession as rising agricultural imports feed into rising inflation, ratings firm Moody's said on Tuesday. "The worst drought on record in South Africa is aggravating the ongoing economic slowdown, threatening near-zero growth if not a recession in 2016," said Moody's Senior Vice [...]

German ‘bail-in’ plan for government bonds risks blowing up the euro

A new German plan to impose "haircuts" on holders of eurozone sovereign debt risks igniting an unstoppable European bond crisis and could force Italy and Spain to restore their own currencies, a top adviser to the German government has warned. ñIt is the fastest way to break up the eurozone,î said Professor Peter Bofinger, one [...]