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We are all getting caught up in the shackles of debt

The only sustainable debt burden is one that can be managed even during cyclical downturns, yet governments continue to rely on it to fuel growth

Japan has one of the highest debt-to-GDP ratios among large advanced economies
Japan has one of the highest debt-to-GDP ratios among large advanced economies Photo: Toru Hanai / Reuters

Global growth is accelerating. But before we break out the champagne, we should acknowledge the long-term risks to sustained expansion posed by rising private and public debt.

Market analysts view the uptick in private lending in most emerging and some developed economies as a sign of higher demand and a precursor of faster growth. But, while this is true in the short run, the relentless rise of overall debt remains among the most serious problems burdening the global economy.

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