Risks facing the global economy
· Agustín Carstens, General Manager of the Bank for International Settlements (International)
Summary written by Dark Majestic in its own words · topics: monetary policy and interest rates, public finances and debt
AC · Agustín Carstens Wiki · Bank for International Settlements WikiRisks facing the global economyContextSpeech on the global outlook; the BIS serves central banks worldwide and watches risks from high real rates and loose public finances.
Why it mattersLoose public budgets could keep real interest rates elevated even after inflation has eased.
Problems raised- Real rates may stay higher than before.
- Fiscal policy may not be restrained enough.
- Market volatility can spill over.
Solutions proposed- Keep monetary policy prudent.
- Consolidate public finances.
- Pursue structural reforms.
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