Dissecting IMF Chief's dire warnings would be:
a) asynchronous monetary policy ( QE in Asia & Europe even as there is an end of QE cycle in USA) could bring about volatility in financial markets; investors will be forced to switch portfolios more rapidly;
b) the US dollar is strengthening; and with the appreciation in that currency, emerging market borrowers may have to pay more in counter party;
c) "Low-Low' (growth conditions in Europe and Japan. Such low growth trends will result in deflationary trends, bad debt accumulation and high unemployment . This would be a difficult mix to head off.
Read more at http://blog-imfdirect.imf.org/2015/02/06/time-to-act-on-the-g-20-agenda-the-global-economy-will-thank-you/
Without any risk or responsibility
a) asynchronous monetary policy ( QE in Asia & Europe even as there is an end of QE cycle in USA) could bring about volatility in financial markets; investors will be forced to switch portfolios more rapidly;
b) the US dollar is strengthening; and with the appreciation in that currency, emerging market borrowers may have to pay more in counter party;
c) "Low-Low' (growth conditions in Europe and Japan. Such low growth trends will result in deflationary trends, bad debt accumulation and high unemployment . This would be a difficult mix to head off.
Read more at http://blog-imfdirect.imf.org/2015/02/06/time-to-act-on-the-g-20-agenda-the-global-economy-will-thank-you/
Without any risk or responsibility
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