Some commentators have rushed to describe the recent global stock market turmoil as “historic” and “unprecedented,” yet its evolution has been quite traditional so far. What may be different this time, however, is whether longer-term stability can be restored with the policy tools that were available in the past. This selloff started as a repricing of global growth prospects. Mounting evidence of economic weakness in the emerging world, along with persistent low growth in Europe and Japan, made it hard for markets to ignore the impact on earnings and profitability of a global slowdown. The selloff accelerated as ... (full story)