Leveraged developed countries.

The charts in this report highlight that credit metrics in 5 countries with highly leveraged private sectors have been crushed.

At the expense of monitoring debt trends and they impact on Asset Price Inflation, central banks of these countries have focusing solely on Consumer Price Inflation, resulting in over loose monetary policy and large increases in private sector indebtedness.

Because they continue to focus on CPI (rather than credit metrics), these Central banks could keep monetary policy tight for a long period of time, which will impact their already poor performing economies.