Getting the Policy-Mix Right: Realizing Global Financial Stability
Tobias Adrian, Financial Counsellor & Director, Monetary and Capital Markets Department, International Monetary Fund
Financial stability has continued to improve since the October 2016 Global Financial Stability Report (GFSR). Economic activity has gained momentum, amid broadly accommodative monetary and financial conditions. Gains in many asset prices reflect a more optimistic outlook for growth as well as an improving appetite for risk. In the US corporate sector, hopes for corporate tax reform have lifted sentiment, but the key question is whether reforms will lead to greater economic risk-taking, or instead add to financial risk-taking, given already elevated leverage. Financial stability risks remain elevated in emerging market economies as global political and policy uncertainties open new channels for negative spillovers, raising vulnerabilities among corporates and banks. China faces mounting risks to financial stability as credit continues to rise rapidly and in Europe, a cyclical recovery is unlikely to be sufficient to restore the profitability of persistently weak banks, as European domestic banking systems face a number of structural challenges. What is the right policy mix for policymakers to secure a stronger path for growth and financial stability?
This briefing will be a part of Chatham House’s International Financial Institution (IFI) Briefing series where institutions will share their thinking with leaders in business, government and academia.
Attendance at this event is by invitation only.
The Chatham House Rule
To enable as open a debate as possible, this event will be held under the Chatham House Rule.