The prolonged period of low central bank interest rates and rising debt in developed economies poses the greatest risk to financial markets in the medium-term, according to an International Monetary Fund (IMF) executive.
David Lipton, the IMF's first deputy managing director, told CNBC why the enduring trend of quantitative easing, implemented after the 2008 financial crisis to increase liquidity and encourage borrowing, now presents potentially harmful downsides.
"In financial markets, there are risks that come from having low interest rates for a very long time," he said. "That's affecting risk-taking behavior, it's affecting the market risk that capital markets participants have."
He also pointed to ever-mounting debt in both developed and emerging economies. "We are seeing some greater leverage in the corporate world, in some countries for households, so that rising indebtedness and that increase in market risk really is something that policymakers should keep an eye on."