The Peterson Institute's 24th semiannual Global Economic Prospects session focused on major sources of financial instability in the global economy. Leading off with an assessment of the US and global outlook, Senior Fellow David Stockton argued that, with recovery far from normal and inflation risks clearly on the downside, the fear of creating or ignoring financial instability is all that should hold back further monetary policy easing. Senior Fellow Nicholas R. Lardy presented his analysis that worries about financial instability in China are exaggerated. Senior Fellow Ángel Ubide focused on the key risks markets may be overlooking. Visiting Fellow Nicolas Véron discussed what the run-up to and execution of the European asset quality review and bank recapitalization means for macro outcomes.
David J. Stockton