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This faction believes that the national debt poses a serious threat which demands austerity policies.
Burgeoning household debt poses a "credible" threat to the economy, which could require further rate rises from the Bank of England, a senior Threadneedle Street policymaker warned yesterday.
German finance ninister Wolfgang Schaeuble told reporters: The IMF has time and again said that high public debt poses a problem.
Today, President Obama and Congress agree that the national debt poses lethal threats to future generations, and so they should declare war on that enemy and adjourn politics, at least until it has been subdued.
"The sheer volume of commodity-related debt poses challenges because it means that credit losses from commodity investments will be substantial for many investors," said Mariarosa Verde, Moody's group credit officer.
Thus highly indebted households find it harder to "smooth" their consumption and similarly burdened firms find it harder to invest when their revenues dip.To assess the threat debt poses to economic stability, Douglas Sutherland and Peter Hoeller of the OECD have calculated trend rates of debt to GDP, smoothing out the cyclical ups and downs.
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Shariah, the legal code of Islam based on the Koran, forbids debt, posing a potential problem for contract enforcement in the case of default.
A possible Brexit and high household debt pose key risks to the recovery, the International Monetary Fund warned yesterday as its managing director Christine Lagarde said she "very, very much" hoped the UK remained within the European Union.
For the past few years, policymakers and regulators responsible for safeguarding the nation's economy and financial system have been warning about dangers rising student debt pose to economic growth and household balance sheets.
The ongoing stand-off in the eurozone over Greece's debts poses a risk to Britain's economic stability, Chancellor George Osborne has warned.
Unstated debts pose a bigger problem to states with smaller economies.
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