Fiscal crisis seen as top business risk

Fiscal policy: A woman walking past the headquarters of the People’s Bank of China in Beijing. China is expected to increase its fiscal stimulus but will be constrained by its total debt of 300% of GDP. — Reuters

WITH many countries facing limitations in monetary easing policies, eyes are turned to large fiscal or government spending to help stimulate rapidly slowing economies.

But fiscal stimulus can also be limited for many countries that have overspent and worse still, are already heavily in debt.