Late expansion. The output gap has closed, and the economy is increasingly in danger of overheating. A boom mentality prevails. Unemployment is low, profits are strong, both wages and inflation are rising, and capacity pressures boost investment spending. Debt coverage ratios may deteriorate as balance sheets expand and interest rates rise. The central bank may aim for a “soft landing” while fiscal balances ------怎么理解晚期扩张Debt coverage ratios会恶化？
