In its newest World Monetary Stability Report, the IMF argued that present market imbalances, resembling “lofty” asset valuations, rising authorities debt and heightened use of leverage by monetary establishments – particularly by hedge funds and personal credit score funds – may exacerbate future stability dangers by amplifying antagonistic shocks.
These shocks have change into extra possible now because of financial and geopolitical uncertainty, the IMF famous.
“A lot of this uncertainty is as a result of half of the world’s inhabitants has elected or will elect new governments this 12 months, and future insurance policies t…
