News Center
Sep 28, 2015

Eurex

World needs a financial early warning system, says Nouriel Roubini

Recent market volatility – in emerging and developed economies alike – is showing once again how badly rating agencies and investors can err in assessing countries’ economic and financial vulnerabilities. Rating agencies wait too long to spot risks and downgrade countries, while investors behave like herds, often ignoring the build-up of risk for too long, before shifting gears abruptly and causing exaggerated market swings. Given the nature of market turmoil, an early-warning system for financial tsunamis may be difficult to create; but the world needs one today more than ever, writes Nouriel Roubini in an article for the World Economic Forum.

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