Another August of financial turbulence

Summary

Despite the apparent calm of recent days, the underlying elements of recent tensions in financial markets continue to cause concern for several reasons.

Key points

• Key points:
• Firstly, the problems are the result of an unusual combination of factors generating geopolitical uncertainty.
• Secondly, the negative impact of trade uncertainty on the economy is becoming increasingly evident.
• Thirdly, and by no means least importantly, doubts are growing as to the role of economic policies in addressing these shocks.

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