global

The world has not yet begun to deleverage its crisis-linked borrowing. Global debt-to-GDP is breaking new highs in ways that hinder recovery in mature economies and threaten new crisis in emerging nations – especially China. This column…

By Michael Pettis Doug, Pancoast, an American entrepreneur living in Shanghai, asked to interview me for his blog, and I agreed to do so. I think it was meant to be a brief interview, but I began to respond on a Saturday evening, while…

Markets have failed to correct 15 or even 10% for a record period of time during this cyclical bull market. Given the stretched valuations, this makes the market vulnerable to a pullback. What are the types of events which could precipitate…

Drawing on research by the IMF's Hites Ahir and Prakash Loungani, the chart compares the house-price-to-rent ratio compared with the historical average. This is a standard measure of valuation. Clearly by such a metric, the recovery in…

The global economic recovery continues as all of the most important economies in the world are on track for growth. Europe is the laggard and the tepid recovery there could still stall out. Below are some brief ideas on where this is headed…

It is not US fundamentals, but global fundamentals that will determine the Fed's ability to taper. If the Fed tapers when the global economy is already in the doldrums, as it is at the moment, the recessionary rebound to the US economy…

I am alarmed at how quickly economic and market volatility has spread throughout the emerging markets. However, I remain positive about the big picture global macro outlook because recent data show that Europe, the US and now China are…

A rout in global equities is taking shape with the decline led by Japan and emerging markets. Japan is now in bear market territory, with shares down over 20% from the high. But emerging markets are my main worry because of the real…

The Daily Telegraph produced this chart based on OECD data on housing markets around the world. It shows which markets are most undervalued and which are most overvalued on a price to rent and price to income ratio basis. Take a look and…

The focus on currency wars distracts from other and arguably more important issues. Much of coverage of the G20 statement focused on the foreign exchange market, but has missed what is likely an even more important story. The G20 have…