CArmen Reinhart is considered one of the most renowned economists when it comes to the topic of debt. The work of the Harvard professor and her colleague Kenneth Rogoff has had a major impact on public debate about the euro crisis. If she now warns of an imbalance in the financial system, she is sure to attract attention.
This time, however, it is not about the euro zone, but about China. Reinhart, along with other researchers, found that 60 percent of Chinese foreign loans are now at risk of default. This has far-reaching and global consequences.