Notwithstanding the relative calm in recent weeks, the global financial outlook continues to be uncertain. It is not clear that we have seen the end of the emergence of tainted assets, and doubts persist on whether the initiatives underway are sufficient to restore the stability of the financial system.
There is continued debate on the adequacy of the fiscal stimulus packages across countries, and their effectiveness in arresting the downturn, reversing job losses and reviving consumer confidence. Many major central banks have nearly or totally exhausted their conventional weaponry of calibrating policy interest rates and are now resorting to unconventional measures such as quantitative and credit easing.