Wolfgang Schäuble warns of debt-driven global financial crisis

Central bank policies raise threat of bubbles, says outgoing German finance minister

 His comments come a day after Christine Lagarde warned of “threats on the horizon” from “high levels of debt in many countries to rapid credit expansion in China, to excessive risk-taking in financial markets”.



The BIS warned last month that the world had become so used to cheap credit that higher interest rates could derail the global economic recovery.



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