The eurozone crisis threatens to generate a global wave of instability by sucking liquidity out of financial markets worldwide, according to leading policymakers and financiers.
Mark Carney, the new chairman of the Financial Stability Board, the international association of regulators, told an audience in London on Tuesday that the stresses in the eurozone were creating financial volatility around the world that would soon start dragging down global economic growth.
“As global liquidity recedes, volatility is increasing and activity falling. The effect on the real economy will soon be felt,” said Mr Carney, who is also governor of the Bank of Canada.