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 […]

Avoiding Another Year of Living Dangerously: Time to Secure Financial Stability

2017-04-15T14:25:17-04:00April 13, 2011|

In various guises, the “Year of Living Dangerously” has been used to describe the global financial crisis, the policy response to the crisis, and its aftermath. But, we’ve slipped well beyond a year and the financial system is still flirting with danger. Financial stability risks may have eased, reflecting improvements in the economic outlook and continuing accommodative policies. But those supportive policies—while necessary to restart the economy—have also masked serious, underlying financial vulnerabilities that need to be addressed as quickly as possible. Many advanced economies are “living dangerously” because the legacy of high debt burdens is weighing on economic activity and balance sheets, keeping risks to financial stability elevated. At the same time, many emerging market countries risk overheating and the build-up of financial imbalances—in the context of rapid credit growth, increasing asset prices, and strong and volatile capital inflows. Here is our suggested roadmap for policymakers to address these vulnerabilities and risks, and achieve durable financial stability.
Go to Top