International Economics: IB Economics

Stimulus packages from around the globe: the ECB have followed the Fed and the UK government with an unrpecedented stimulus package to buy debt and try to prop up Europe's economies and the Euro more generally. 

As with other such packages, the devil will be in the detail, but the intention is sound. 

The IMF with another sobering reminder of a problem that could derail the global economy: the level of corporate debt. 

At $19 trillion, the IMF worries that any future downturn that mirrors the last global financial crisis would have the effect of making large tranches of debt unserviceable, and have dire consequences for the global economy as a result. Watch this space. 

Phillip Inman writes about what he sees as a major threat to the global economy, levels of corporate debt. He reiterates warnings from the IMF and World Bank about current levels of debt, suggesting that during a recession it will be impossible to service and this would see lots of organisations going out of business. 

Should it come to pass, this would have adverse effects on growth across the developed world, and, by definition, the global economy more generally.

Another headwind for the global economy - the OECD is worried about the level of corporate debt, because of the extent to which it needs to be refinanced in the next three years.