At the current juncture, however, assigning probabilities to specific risk scenarios and quantifying their impacts is hardly feasible. The International Monetary Fund’s recent World Economic Outlook gives a long list of risks to the economic outlook, and many of these risks are highly correlated.
[2] Today, I would like to make three points: First, the global financial system has weathered the storms of the pandemic quite well. Risks in the financial system were contained especially due to the massive public policy support that protected the real economy. Also, the banking system has been more resilient thanks to the global financial sector reforms of the past decade.