In the aftermath of the Great Recession of 2008–09, we are left with a series of risks linked to the possible re-emergence of global imbalances and associated turmoil in currency markets and to the huge accumulation of public debt in advanced economies, which could lead to higher borrowing costs and further financial turbulence if markets started to worry about its sustainability.
The two risks are interrelated and are the subject of discussions within the G20 and in other venues.