• Dr Gerard Lyons

Financial Stability Risks - some interesting charts

At their spring meetings the International Monetary Fund unveils three key publications

- their world economic outlook

- their financial stability report

- and their fiscal monitor.

From the IMF’s Global Financial Stability report a few charts stand out ... this one highlights how financial conditions are still loose - and indeed as they point out there is still the need to avoid premature policy tightening.

Later today the IMF Fiscal Monitor will likely show how western central banks have been the big buyers of government debt - this graph from their Stability Report shows how banks & central banks have been the big buyers of public debt across emerging economies.

I liked this chart below from the Financial Stability Review - largely because it is possible to compare with the position after the 2008 Global Financial Crisis and the legacy of that, as we know, lasted a long time.

& the last chart to show from IMF Stability Review - based on IMF’s own estimates it fits with their references at yesterday’s press conferences that financial valuations are stretched - with US vaccinations high & a strong rebound expected this might continue.