Tax & Spend
Fiscal Debt Binge Is World’s Biggest Stability Threat, BIS Says
- Parting shot from Borio warns governments to repair finances
- When US warning signs emerge, global impact is bigger, he says
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Government borrowing habits pose the biggest danger to world economic stability and recent shifts in market sentiment should serve as a warning, the Bank for International Settlements said.
Presenting the final quarterly report of his career at the Basel-based institution, senior official Claudio Borio delivered a parting shot to nations, saying that public-finance repair should be prioritized before any alarm among bond investors takes hold.