"Dire States"
in
- Substack
The world is drowning in debt. Faced with the new shock of the Iran war, the next financial crisis may be closer thank we think.
Nearly two decades after the 2008 financial crisis, global debt has surged to record levels, leaving economies highly vulnerable. The Iran war and resulting energy shock expose how little fiscal and monetary room governments now have to respond.
With inflation still elevated and borrowing costs rising, the old crisis playbook no longer works. In his most recent article, Prof. Henrik Müller argues that the world may be heading toward another financial crisis driven by unsustainable debt and limited policy options, unless productivity gains – potentially from AI – materialize.