October 22, 2019
Imbalance and instability often have a negative impact on capital market structure and can lead to volatility and fragility. Nevertheless, the build-up of imbalances, and ultimately instability, tends to occur naturally over the course of an economic cycle, and in the late stages may be seen just before a recession kicks in. In their quarterly macroeconomic outlook, “Between imbalance, instability and improvement,” the Global Multi-Asset team examines this phenomenon in the current environment, looking at aspects such as negative interest rates and divergent budget paths in some major economies.
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