By José Viñals
Policymakers’ decisive actions since our last report in October have increased global financial stability by reducing acute risks.
- In the euro area, policymakers averted a financial cliff.
- In the United States, the worst fears of the fiscal cliff had been averted, while balance sheet repair and continued monetary easing have supported financial markets and the recovery.
- In Japan, new policy initiatives have caught the imagination of global markets that Japan may finally leave its deflation valley.
But our latest Global Financial Stability Report concludes that improved financial markets and gains in financial stability will not be sustained—and new risks are likely to emerge—unless policymakers address key underlying vulnerabilities.
Filed under: Economic Crisis, Europe, Finance, Financial Crisis, growth, International Monetary Fund | Tagged: debt, euro area, GFSR, Global Financial Stability Report, IMF, iMFdirect, International Monetary Fund, Japan, reform, United States | Leave a comment »