A Call for Vigilance After a Strong Year for Risky Assets

2021-05-13T12:56:12-04:00January 28, 2020|

By Tobias Adrian and Fabio Natalucci

عربي, 中文, Español, Français

While we have seen some recent volatility, many risky asset markets around the world had a spectacular year in 2019. Equity market indices were up just over 30 percent in the United States, close to 25 percent in Europe and China, and over 15 percent in emerging markets and Japan. Emerging-market sovereign debt, U.S. high-yield debt, and emerging-market corporate debt all had returns in excess of 12 percent. Remarkably, the fourth quarter of 2019 was […]

Ensuring the Benefits of Capital Flows in the Middle East

2021-05-13T12:56:12-04:00January 15, 2020|

By Jihad Azour and Ling Zhu

عربي, Français

Since the global financial crisis of 2008, emerging market economies have experienced a surge in capital flows in response to significant monetary easing by major central banks. Gross capital inflows to the Middle East and North Africa (MENA) have remained high compared to other emerging markets, but their composition has changed significantly, with a surge in portfolio flows (equity and bond instruments) and a decline in foreign direct investment. […]

Global Growth Plateaus as Economic Risks Materialize

2019-03-13T13:33:15-04:00October 8, 2018|

By Maurice Obstfeld

October 9, 2018

عربي中文, Español, FrançaisBaˈhasa indoneˈsia, 日本語, Русский

Uncertainty over trade policy is becoming a drag on economic activity (photo: Imagine China/Newscom)

The latest World Economic Outlook report projects that global growth will remain steady over 2018–19 at last year’s rate of 3.7 percent. This growth exceeds that achieved in any of the years between 2012 and 2016. It […]

Volatility Strikes Back

2019-03-14T11:58:02-04:00May 3, 2018|

By Sergei Antoshin, Fabio Cortes, Will Kerry and Thomas Piontek

May 3, 2018 

Investors who bet on continued low volatility suffered steep losses (photo: Richard B. Levine/Newscom).

The bouts of volatility in early February and late March that spooked investors were confined to equity markets. Nevertheless, they illustrate the potential for sudden market moves to expose fragilities in the financial system more broadly.

With central banks in […]

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