Risk Update – May 2020

We’ve written a fair bit about China’s prominent role in the build-up of endogenous risk during the global growth cycle since the GFC. There are any number of ways of trying to reflect it. A chart we used last month gives a clear impression of China’s importance in terms of credit creation over the last cycle. In the March monthly, we used one of our regular views, China FX reserves to M2 money supply. Back in the December 2019 monthly, we showed some graphs from IMF and World Bank reports. This one shows the rates of change of Debt/GDP going…