Sunday 15 October 2017

Bubble Trouble: What Lies beneath at the IMF? - Counting the Cost


Why the International Monetary Fund (IMD) and Richard Thaler, the 'father of behavioural economics' and winner of the Nobel Prize in economics, are signalling danger ahead for the global economy.

The IMF has spent the last decade trying to pick up the pieces after failing to predict the last financial crisis. This week, the IMF said nearly 75 percent of the world is now experiencing an upswing.

It's predicting that the world's economy will expand by 3.6 percent in 2017 and by 3.7 percent in 2018. That's slightly higher than the 3.5 percent and the 3.6 percent growth what it was predicting back in July.

But the IMF also issued a warning: It said record low borrowing costs designed to help the economic recovery are pushing up debt levels in the world's largest economies. It singled out China as one of the worst offenders.

Shihab Rattansi reports from the annual World Bank, IMF meetings; and David Coker, a lecturer at the Westminster Business School, discusses the cracks in the global economy.