Global Financial Market Turbulence: Factors and Risks

Russian Economic Developments. Moscow, 2015, #11, pp. 14-16

3 Pages Posted: 10 Dec 2015

See all articles by Anna Kiyutsevskaya

Anna Kiyutsevskaya

Center for Macroeconomic Research, Alfa Bank

Pavel Trunin

Gaidar Institute for Economic Policy

Date Written: December 8, 2015

Abstract

In the last few months, the global economy has been faced with growing risks primarily emanating from the state of the world’s two largest economies and their policies. One of the main factors behind the current turbulence in global financial markets is the destabilizing expectation that the US Federal Reserve is going to toughen its policy stance. The ongoing decline in unemployment and the steady rebound in business activity have created preconditions for a rise in the US Federal Reserve’s key interest rate. As far as the developing economies are concerned, the most likely result of this decision will be an increase in the rate of capital outflow and a new wave of currency depreciations. The second and maybe even more important factor is China’s continuing deceleration in economic growth, the collapse of its stock market and the unexpected devaluation of the Yuan.

Keywords: Russian economy, financial markets

JEL Classification: E31, E43, E44, E51, E58

Suggested Citation

Kiyutsevskaya, Anna and Trunin, Pavel, Global Financial Market Turbulence: Factors and Risks (December 8, 2015). Russian Economic Developments. Moscow, 2015, #11, pp. 14-16, Available at SSRN: https://ssrn.com/abstract=2701388 or http://dx.doi.org/10.2139/ssrn.2701388

Anna Kiyutsevskaya (Contact Author)

Center for Macroeconomic Research, Alfa Bank ( email )

Moscow
Russia

Pavel Trunin

Gaidar Institute for Economic Policy ( email )

Gazetny pereulok, 3-5
Moscow, 125993
Russia

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