TheDigitalArtist (CC0), Pixabay The global economy is finally emerging from the worst phases of the COVID-19 pandemic, although with prospects diverging starkly across regions and countries, the IMF says in its Global Financial Stability Report unveiled Tuesday (April 6) in Washington, DC. “Extraordinary policy measures have eased financial conditions and supported the economy, helping to contain financial stability risks. But those rescue efforts may have unintended consequences and sow the seeds of future financial market instability,” said Tobias Adrian, Director of the Monetary and Capital Markets Department at the International Monetary Fund. “Continuing policy support remains necessary — but targeted macroprudential measures should pre-empt a legacy of vulnerabilities. Global financial conditions are still easy. But there is a risk that an asynchronous and divergent recovery — between Advanced and Emerging Markets — may result in tighter financial conditions and portfolio outflows in Emerging Market economies,” he added. “For many Frontier Markets, access to funding remains a ...read more...