Pedestrians cross a street in Tokyo. Quantitative easing stopped a debt implosion, but its initial success enabled politicians to avoid structural reforms. The result was slower growth from declining productivity, even as companies and governments continued to borrow. In short, we are in a debt trap. Photo: AFP

How to get out of the debt trap – without printing more money

Andrew Sheng considers the policy options open to major economies, including China, to reduce debt, before another global crisis hits

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Pedestrians cross a street in Tokyo. Quantitative easing stopped a debt implosion, but its initial success enabled politicians to avoid structural reforms. The result was slower growth from declining productivity, even as companies and governments continued to borrow. In short, we are in a debt trap. Photo: AFP
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