Containing Financial Turmoil
The reappearance of fears about the economic fallout from financial shocks highlights the lack of progress since the Asian crisis a decade ago in moving towards a new international financial architecture. It is imperative that this time around, reforms offer a lasting solution to global imbalances and tackle head on the most unruly elements of international financial capital.
https://prosyn.org/Qlioz64
Today’s ongoing financial market turmoil comes as no surprise to those who have been warning about the risks to the world economy from the end of the housing market bubble in the United States. Back in January, the United Nations’ outlook for the global economy raised concerns about the economic pain this might impose on heavily indebted US households. It also emphasized how weakly regulated, closely interconnected global financial markets, together with persistent global macroeconomic imbalances, jeopardize growth and development prospects in the world economy, including poorer countries.