FOR too many years, global monetary policy has been ultra-easy. It has resulted in a debt trap of its own making. With the goldilocks global economy we now have, continuing on the current monetary path is imprudent – adding to demand even as the economy is running hot.
Indeed, rather dangerous. It brings with it, the serious threat of inflation. But any sharp reversal also involves great risks. Indeed, the odds of another crisis coming through continue to rise. At this time, inflation is not the only danger. Debt ratios have been allowed to rise for too long; it has now grown global.