The U.S.-China trade war poses the biggest risk to global stability and fiscal s...
International Monetary Fund Deputy Managing Director David Lipton participates in the forum on dealing with booms and busts during the IMF/World Bank spring meeting in Washington, U.S., April 21, 2018. REUTERS/Yuri Gripas
“Obviously, this is not a matter for Europe alone. The United States needs to get its fiscal house in order as well. U.S.-China trade tensions pose the largest risk to global stability,” Lipton said during a conference in Lisbon. Lipton said he believed fiscal-stabilization capacity must be at the heart of risk reduction in Europe, describing it as crucial to “respond to macroeconomic shocks and improve the fiscal-monetary policy mix”.
Lipton said Britain’s planned exit from the European Union was also breeding uncertainty in Europe and beyond.
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