Wednesday, June 19, 2019
Advanced world corporate debt risks.
Expansionary fiscal and monetary policies have boosted economic activity in the United States, Japan, Germany, United Kingdom and France since the global financial crisis, and corporate profits have grown faster than real GDP in all five. In Germany, Japan and the United Kingdom, profits have outgrown the outstanding debts held by financial corporations. This is not the case in the United States or France, where corporate debt risks are piling up.