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Market liquidity could evaporate in response to shocks, IMF warns
It also notes corporate debt in emerging-market economies has quadrupled in the past decade with low interest rates
Add BT as a preferred sourcePublished Tue, Sep 29, 2015 · 09:50 PM
Tokyo
AS global stock markets reeled and currencies gyrated on Tuesday on interest-rate uncertainties and fears of accelerating economic slowdown in China, the International Monetary Fund (IMF) issued a chilling warning that financial-market liquidity could "evaporate in response to shocks".
"Policymakers need to monitor risks and prepare for normalisation of monetary policy" in the United States and elsewhere, the IMF said, while warning that markets could otherwise "freeze up" again as they did in the 2008 global financial crisis.
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