Growth based on high leverage typically proves to be illusory.

Leverage is one of the worst.

Moreover, the relative increase in debt (leverage) in the financial system was similar on both sides of the Atlantic.

And, with the corporate sector already overleveraged, a broad based expansion of credit is not safe.

If the economy as a whole desires to leverage up, the result is an inflationary boom.

If implemented, his innovative idea would reduce homeowners leverage.

The ECB acknowledges that leverage can create important risks for financial stability .

For starters, no one knows at what corporate leverage ratio a crisis will be triggered.

The concept of leverage is fundamental to the business model implemented by many AIFMs .

Specifically, China needs prudential regulation that limits the use of leverage for asset purchases.

Economists who insist that China s financial leverage is not too high are a dwindling minority.

Leverage shifted not only from private to public sectors, but also among countries.

In such economies, that pattern not only typically depended on leverage it also enlarged the non tradable side of the economy and shrank the tradable side.

We need to stimulate growth and increase inflation without generating higher private or public leverage.

As a result, by 2010, China s overall leverage ratio had risen by 30 .

Higher leverage creates macroeconomic risk not least for fiscal balances when implicit guarantees must be honored.

Thanks in part to research by Reinhart and Rogoff, we know that excessive leverage is unsustainable, and that restoring balance takes time.

In particular, we understood that the rapid run up of house prices, coupled with the extension of leverage, posed macroeconomic dangers.

As a result, investors are worried that China could slip into the excess leverage growth model that has served many developed economies so poorly.

But it's also, of course, to do with the massive crisis that followed excessive leverage, excessive borrowing in the private sector.

For example, if companies reduce investment, they will weaken growth and boost their leverage ratio further.

Not only are they untested, but restricting leverage in some parts of the banking system would merely cause the liquidity from zero rates to flow to other parts of it, while trying to restrict leverage entirely would simply drive the liquidity into the less regulated shadow banking system.

Leverage is increasing, with some 57 trillion having piled up worldwide since the global financial crisis began.

Certainly the People s Bank of China, which engineered a credit squeeze in June in an attempt to discourage loan growth, seems to believe that financial leverage has risen to dangerous levels.

Consider China s high leverage ratio, which many argue will be a key factor in causing a crisis.

The single market also provides a platform and leverage to export goods and services to international markets.

The main argument is that high leverage contributes powerfully to systemic risk a condition in which asset prices move in a highly correlated way, and distress, when it occurs, spreads quickly. Leverage is also partially caused by misperceptions of risk and mispricing of liquidity.  It is desirable to constrain leverage, but not to the point of increasing the cost of capital and investment.

But Germany has all of the leverage it needs to implement the stability oriented reforms that it wants for Europe.

Over the medium term, according to Wolf, countries need to put in place regulatory measures that lower debt levels and discourage overleveraging.

In principle, Germany could try to boost domestic demand by leveraging up but, unless the exchange rate adjusts upward to shrink the tradable sector at the margin, doing so would be inflationary.

The economy is still struggling to provide a sufficient number of jobs for those who were previously employed in leverage driven activities that are no longer sustainable (let alone desirable).

If you put up a prize, you can get literally a 50 to one leverage on your dollars.

It seems unlikely that not a single central bank analyst was the least bit worried about the massive growth in credit and leverage at the time.

And that leverage much of it the result of monetary expansion in most of the world s advanced economies is not even serving the goal of boosting long term aggregate demand.

Another similarity is the accumulation of debt within the corporate sector. Corporate leverage in China rose from 2.4 times equity in 2007 to 3.5 times last year well above American and European levels.

Article 25 ( 3 ) of the proposed directive provides that the Commission shall adopt implementing measures setting limits on the level of leverage that AIFMs can employ , taking into account , inter alia , the type of AIF , its investment strategy and the sources of leverage .

The Basel 3 Accord, adherence to which increased the liquidity of all banks and decreased their leverage, is viewed as a firm standard in some parts of the world.

Otherwise, the world will either become mired in deflation and slow growth, or will need to accept further increases in leverage thereby simply postponing the problem and making it still more intractable.

And you know, when you give to a nonprofit, you might have 50 cents on the dollar.

Overall emerging market debt has grown from 114 to 151 of GDP, and total global leverage is 37 higher than it was in 2008.

The Commission shall adopt implementing measures further specifying the circumstances in which an AIF shall be deemed to employ high levels of leverage on a systematic basis .

This would have discouraged undue investment in some sectors, reduced non performing loans, and contained excessive leverage in the corporate sector, while avoiding the mispricing of commodities.

Seven years after 2008, global leverage is higher than ever, and aggregate global demand is still insufficient to drive robust growth.

Meanwhile, savers are being repressed, asset prices distorted, and incentives to maintain or even increase leverage enhanced.

The hard part of fully realizing potential growth is shifting the composition of domestic demand from consumption to investment without adding leverage.