Is Corporate Debt An Indicator Of Pending Financial Crises?
The Horizons Tracker
JANUARY 5, 2025
What really drives boom-and-bust cycles in the modern global economy?A new paper from Harvard Business School, analyzing data from 115 countries, suggests its not always household debt. Instead, rising corporate debt may be the clearest warning of an impending financial crisis. Experts have focused on housing and household debt, especially since the U.S. housing market collapse triggered the 2008 financial crisis.
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