What economic crisis comes next?

As we come to the end of an era in which money was practically free, the big question is what the fallout will be from rising interest rates. It isn’t difficult to spot possible problems.

Many governments look vulnerable. There are concerns about the UK, where the national debt is now equivalent to roughly 100 per cent of economic output. But what about Italy, where national debt is 150 per cent of national income? Might it succumb to a new vicious circle of rising debt and borrowing costs? How long can its bonds be propped up by low interest rates in the eurozone and backstops provided by the European Central Bank?

For Japan, government debt sits at 260 per cent. The Bank of Japan has begun to question how long its ultra-loose monetary policy can last – an aspect of its financial system that wasn’t really interrogated until now.

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More commercial banks may wobble.