By José Viñals
Our latest update of the Global Financial Stability Report has three key messages.
First, financial stability risks have increased, because of escalating funding and market pressures and a weak growth outlook.
Second, the measures agreed at the recent European leaders’ summit provide significant steps to address the immediate crisis, but more is needed. Timely implementation and further progress on banking and fiscal unions must be a priority.
And third, time is running out. Now is the moment for strong political leadership, because tough decisions will need to be made to restore confidence and ensure lasting financial stability in both advanced and emerging economies. It is time for action.
Now, why have financial stability risks increased?
Filed under: Advanced Economies, Europe, Financial Crisis, IMF, International Monetary Fund | Tagged: advanced economies, balance sheets, banks, capital flows, debt, emerging economies, euro zone, European Central Bank, European Stability Mechanism, financial markets, financial stability, fiscal consolidation, fiscal policy, GFSR, Global Financial Stability Report, growth, IMF, International Monetary Fund, Italy, lending, monetary policy, safe assets, Spain, United States | 3 Comments »