The International Monetary Fund is expecting a 20 percent plunge in the markets in the United States, United Kingdom, Eurozone and China over the coming 24 months, according to a report in the Telegraph. Jose Vinals, the chief of the organization’s financial stability division, said there are several contributing factors, including a huge “loss of market confidence” that would drag down the markets.
The IMF report, addressing global financial stability, said “financial and economic stagnation” looms unless governments find a way to avoid the “pernicious feedback loop of fragile confidence, weaker growth, low inflation and rising debt burdens.” The Telegraph called it the “bluntest warning to date on the costs of policy inaction,” and outlined how investors can “lose faith in policymakers’ ability to revive the global economy.” READ MORE
