What is it about?

Despite current financial market turmoils and global market volatility, it does appear that the Trump administration will find a common ground with major trading partners and eventually reach a consensus which may even align itself with the expectations of a majority (including an unexpected majority). So far, the administration, despite difficult and challenging times (including government shut-downs, and threats of impeachment proceeding), has managed to weather many storms. Everything however - also boils down to the state of the economy - on a short term - and even more importantly, a longer term basis.

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Why is it important?

This is important for many reasons as follows: The current ongoing trade wars are not only impacting levels of uncertainty in the global financial markets; but also monetary policy stances; It is also impacting possible consideration of further accomodative policies and tools - including macro prudential tools; Repercussions of interest rate adjustments in other jurisdictions; as well as Fears of retaliatory responses – as previously highlighted, the use of currency devaluations

Perspectives

In the interests of global financial stability - as well as global relations, it is necessary to achieve an amicable consensus which whilst not compromising more important longer term national interests and benefits, is also accommodating enough to recognise the importance of prompt response and policies aimed at addressing potentially disruptive short term vulnerabilities.

Prof Marianne Ojo
Northwestern University

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This page is a summary of: Facilitating Trade and Global Financial Stability, IGI Global,
DOI: 10.4018/978-1-5225-4131-8.ch007.
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