Context
World Bank President Robert Zoellick has cautioned that markets have been pushed towards a new danger zone which policymakers need to take seriously. In his speech at the Asia Society’s annual dinner in Sydney on Monday, Zoellick said, “A convergence of some events in Europe and the United States has led many market participants to lose confidence in economic leadership of some of the key countries.” His remarks followed a tumultuous week on global markets prompted by fears over the fragile US economy and European debt crisis.
