Lurking conjures up images of spies, flashers and other dodgy types. The IMF’s chief economist Olivier Blanchard takes readers into the dark corners of the financial crisis in his latest article ‘Where Danger Lurks’ in our recent issue of Finance & Development Magazine, and looks at small shocks, sudden stops and liquidity.
"We all knew that there were ‘dark corners’ — situations in which the economy could badly malfunction,” Blanchard said. “The main lesson of the crisis is that we were much closer to those dark corners than we thought — and the corners were even darker than we had thought too."