HBR IdeaCast What Leaders Need to Know About a Looming Recession – and Other Global Threats
30 snips
Oct 25, 2022 
Nouriel Roubini, professor emeritus at NYU’s Stern School of Business and renowned economist, shares his insights on looming global threats. He discusses interconnected mega threats like skyrocketing debt, climate change, and AI job displacement. Roubini emphasizes the urgency for leaders to navigate these challenges responsibly. He offers strategies for managing financial health during economic downturns and highlights the need for international collaboration to tackle complex crises. This engaging dialogue is packed with critical knowledge for navigating today's tumultuous economic landscape.
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The Mother of All Debt Crises
- Global debt has reached unsustainable levels, exceeding 350% of global GDP.
- This buildup is fueled by governments and institutions borrowing excessively during low-interest periods.
Stagflationary Forces
- Stagflation is likely due to short and medium-term negative supply shocks, including COVID-19, the war in Ukraine, and China's zero-COVID policy.
- Additional factors like deglobalization, aging populations, and geopolitical tensions contribute to this stagflationary pressure.
Lessons from the Past
- Learn from the past, particularly the 1970s, where loose monetary and fiscal policies worsened inflation.
- Current high debt levels limit central banks' ability to combat inflation effectively.
