How the long debt cycle might end

Martin Wolf, in his article of 14 May, 2019 in the Financial Times, made reference to some of my earlier publications that warned of a renewed financial crisis. He notes my concerns about a constantly growing ratio of non-financial sector debt to global GDP and the incoherence between the near term implications of monetary policy (expansionary) and financial regulation (contractionary) for aggregate demand. These problems, along with many other “imbalances” in the global economy arising from policy actions, might trigger a renewed crisis. Should exogenous forces, like a trade war, provide an alternative trigger for a new downturn, these “imbalances” will surely worsen it s magnitude and duration.