In the last year, we have already seen some investors pull money out of emerging markets in response to a stronger dollar, rising U. That would broadly match outflows during the financial crisis.
Looking at the economic context, there are several sources of risk that could shake investor sentiment.
Regulators should encourage banks with weak business models and high levels of nonperforming loans to clean up their balance sheets.
 Second, policymakers should rebuild their fiscal and monetary arsenals, which were weakened as they contended with the 2008 crisis and its aftermath.
Traders work on the floor of the New York Stock Exchange after the closing bell on Sept. At the time, the Dow recorded its biggest closing drop in history, falling 777 points.
(Spencer Platt/Getty Images) The world in 2019 is still reckoning with the legacy of the global financial crisis, which is hardly surprising given its scale and lasting impact.
What about areas where progress has been inadequate or where new risks have emerged? Globally, nonfinancial debt ballooned to a record 2 trillion in 2017—224 percent of global GDP, an increase of almost 60 percent over 2007.
In the United States, investor demand for debt issued by highly leveraged companies has led to worryingly loose underwriting standards, increasing the risk of default by weaker borrowers.
 Nonbank finance, also known as shadow banking because it takes place beyond the perimeter of traditional bank regulation, is another source of risk.
Regulators must develop and deploy new tools to address it, particularly in those emerging markets where it has expanded rapidly.