IMF officials warn of high-risk asset sell-off
Investment in emerging markets could be hit by over-aggressive tightening, economists say
Two senior International Monetary Fund economists warned that rising interest rates could spur large sales of high-risk assets in global markets.
Central banks “face a balancing act” in 2022, said deputy division chief Nassira Abbas and financial counsellor Tobias Adrian on the IMF blog on January 27.
Consumer price rises are breaking decades of records. But if central banks tighten monetary policy too quickly, the authors warn, markets might face “a disruptive price revaluation and an even
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