IMF's Lagarde Expects More Market Volatility From Trade Tensions

The video discusses global economic risks, focusing on trade tensions and monetary tightening in the US. It highlights the impact of these factors on global economies, including potential financial crises. The video emphasizes the importance of a resilient financial system and the need for countries to prepare for market volatility. It advises policymakers to maintain vigilance and continue reforms to navigate economic challenges effectively.

What is one of the main recommendations to address trade tensions?

• Increase tariffs

• Deescalate tensions and maintain dialogue

• Close borders

• Ignore the issue

How does monetary tightening in the United States affect other countries?

• It has no effect

• It only affects countries with weak economies

• It benefits all countries

• It affects all countries, even those with good policy mixes

What has strengthened in the banking system to better handle potential crises?

• Stronger capital base and better supervision

• Weaker regulations

• Increased non-performing loans

• Higher leverage

What role do flexible exchange rates play in economic stability?

• They are irrelevant

• They increase volatility

• They act as shock absorbers

• They have no impact

What should policymakers focus on to navigate economic volatility?

• Continue structural reforms and fiscal discipline

• Relax fiscal policies

• Ignore market signals

• Increase fiscal tolerance