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Greece Risk May Pose Black Swan Dangers for Emerging Markets

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Here we go again. A flight to haven assets has begun as Greece’s economy faces a tailspin, sparking concern defaults and bank collapses could spill over to other European nations, and impose a global impact.

This time, though, Europe and the U.S. confront the risk of contagion with a strengthened policy toolkit -- including new mechanisms to monitor and support banks, and a system of swap lines to inject liquidity. In Japan, the central bank is led by a governor who’s already pumping unprecedented monetary stimulus.