WINC - COVID-19 Worsens Pre-Existing Financial Vulnerabilities
By Tobias Adrian, Financial Counsellor and Director of the IMF's Monetary and Capital Markets Department and Fabio M. Natalucci, Deputy Director of the Monetary and Capital Markets Department
Much the same way COVID-19 hits people with pre-existing health conditions more strongly, so is the pandemic-triggered economic crisis exposing and worsening financial vulnerabilities that have built up during a decade of extremely low rates and volatility.
Our recently released chapters 2-4 of the Global Financial Stability Report focus on three potential weak spots: risky segments in global credit markets, emerging markets, and banks. Should the ongoing