How much can markets be relied upon to stabilise themselves and how much help do they need from governments and regulators?
The positive spin at present is that if markets succumb to fear of economic stagnation, this should reduce the price of commodities and of money (through reducing the yield on bonds). This will help create the conditions for a recovery.
Evidence comes from the oil market, where yesterday crude fell below $60 per barrel, almost 20 per cent below its level of last week.
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