Predicting Financial Crises: The Search for the Most Telling Red Flag in the Economy

Summary:
Page Title:Predicting Financial Crises: The Search for the Most Telling Red Flag in the Economy – C.D. Howe Institute
Article Title:Predicting Financial Crises: The Search for the Most Telling Red Flag in the Economy
URL:https://cdhowe.org/publication/predicting-financial-crises-search-most-telling-red-flag-economy/
Published Date:February 13, 2020
Accessed Date:February 8, 2025

February 13, 2020 – Canadians’ level of indebtedness is raising concerns on the basis of several traditional measures, but the most reliable predictor of trouble ahead is the debt-service ratio, says a new report from the C.D. Howe Institute.

In “Predicting Financial Crises: The Search for the Most Telling Red Flag in the Economy,” authors Jeremy Kronick and Steve Ambler point to debt servicing as an improvement over traditional credit measures in predicting future economic growth and financial crises.

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