Tightening Financial Conditions Sound Alarm for World Economy

Tightening Financial Conditions Sound Alarm for World Economy
A general view of the Moscow International Business Center, also known as "Moskva-City", in Moscow, Russia on Jan. 17, 2018. Maxim Shemetov/Reuters
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Global financial conditions, perceived as strongly correlated with future growth, are at the tightest in two years, driven by soaring energy prices, sliding stocks, and the market fallout from the Ukraine-Russia conflict.

Financial conditions is the umbrella phrase for how metrics such as exchange rates, equity swings, and borrowing costs affect the availability of funding in the economy.