Olivier Blanchard, chief economist at the International Monetary Fund, has identified three major risks faced by the global economy. They are, in his words, low interest rates, war, and Europe: 1. “The long period of low interest rates has led to some search for yield, and financial markets may be too complacent about the future … Macro prudential tools are the right instruments, but one has to worry that they may not be up to the task.” In other words, investors have ended up in some pretty risky positions that will hurt them if the interest rate environment changes or …read more
Source: Business Insider
