Further on the external front, major risks include: Rising geopolitical tensions, notably between the US and Iran, as well as social unrest in some countries (e.g., Hong Kong, Argentina, Chile, Iran, Iraq, Turkey, and Venezuela), could disrupt activity and hurt already tepid business sentiment; Still high trade barriers between US and China could continue to imperil global supply chains, erode sentiment, and undermine global manufacturing and trade; and Recent coronavirus outbreak which has been declared as “global health emergency” by the World Health Organization (W HO).
A simple, but effective, leverage standard has been imported from Canada. It will protect the system from risks we think are low but in fact are not. These measures have lowered the probability of failure. However, our goal is not a fully risk-proofed system. That is neither attainable nor desirable.