The International Monetary Fund (IMF) released a new Global Financial Stability Report Tuesday that warns that“a series of cascading shocks” endanger global financial stability. The IMF notes that since its last issuing of this report, in April of this year, the situation for the global financial system had “materially worsened.”
Deepening worldwide economic problems risk turning a more localized financial insolvency into a threat to global financial markets. The agency pointed to a list of problems: the aggressive hiking of interest rates, significant sell-offs in stock and bond markets, extreme volatility in financial markets, the depreciation of the dollar, soaring borrowing costs for emerging markets, and the general tightening of financial conditions globally.
It added to these present-day problems, a series of future threats that could further exacerbate things: Inflation could remain high (even with a recession),…
