A balance sheet recession is a type of economic recession that occurs when high levels of private sector debt cause individuals or companies to collectively focus on saving by paying down debt rather than spending or investing, causing economic growth to slow or decline.
Oct 10, 2018 · Countries having more comfortable balance sheets have more space to respond to adverse developments in the economy, a top official of the International Monetary Fund (IMF) said Wednesday, urging nations to manage assets better. Get more World News and Business News on Zee Business.
The severity of the crisis is exacerbated by the scope of the bad debt that weigh on bank balance sheets largely in the form of "toxic assets" (dodgy mortgages that were bundled together, given a "AAA" rating by agencies and on-sold throughout the world economy). And now, after collecting data in the years following the Great Recession, the IMF concedes (pdf) that fiscal multipliers are probably considerably larger than previously thought. Coming from the IMF, the institution that insists on austerity at basically every crisis it is called to, this is a big deal. via The IMF And The Fiscal […]
Oct 05, 2016 · The IMF Is Worried About the World's $152 Trillion Debt Pile By . Andrew Mayeda. The IMF Is Worried ... Bad debts have ended up on government balance sheets. Meanwhile, low interest rates drove a ... Oct 09, 2016 · A risk of Great Recession Redux? ... the annual meetings of the International Monetary Fund and World Bank in Washington ... outdated — too dependent on a massive balance sheet and hedge fund ... Jan 01, 2014 · Compare global experiences during the balance sheet recession and find out what is needed for a full recovery. The Escape from Balance Sheet Recession and the QE Trap. details the many hidden dangers remaining as the world slowly recovers from the balance sheet recession of 2008.