IMF reports record global debt levels
Seven years in the wake of the global financial crisis, global debt levels -- both public and private -- have risen to a record $152 trillion, according to the International Monetary Fund. This amount is more than double the size of the global economy.
The world's major economies appear to be stuck in an era of historically low interest rates, including negative short-term rates employed by some central banks. Rates have been kept low as a means to inject more liquidity into the markets and spur economic growth, but as the Financial Times notes in a recent article based on the report's findings, the slow pace of the global economic recovery and rising debt levels raise questions regarding the effectiveness of this policy.
-- Jay Jakub