Global debt risk: Are we prepared for the next crisis?

This article was published on 25 April in a new, on-line  Swiss business journal called “The Market”. It suggests that our collective efforts at “crisis prevention” have not been successful and that future economic and financial crises can by no means  ruled out. Moreover, the effectiveness of the instruments we have available to attenuate such problems (“crisis management”) have seriously diminished over time. In such circumstances, many debts will not be serviced or repaid. To avoid a disorderly outcome, like the Debt/Deflation described by Irving Fisher in 1936, many debts will have to be restructured or forgiven. We should be focusing now on improving our legal and administrative procedures to ensure that these debt problems can be resolved  (“crisis resolution”) in as orderly a way as possible.