BIS' Caruana warns a debt trap 'looms large'
Laments lack of analytical framework for dealing with finance-real economy ‘interplay'
Policy-makers lack a "satisfactory analytical framework" to deal with the interplay between finance and the real economy, Jaime Caruana, the general manager of the Bank for International Settlements (BIS) said in a speech earlier this month but published on Friday.
"Debt has a prominent role in this interplay," Caruana said, but added: "We don't have a good answer to the question: how much debt is too much debt?"
He noted that total global debt (of households, non-financial corporates and
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