Stock market tailspin cannot be ignored

One of the biggest worries about this month’s sudden seizure in world markets is how puzzled investors have been left by it, and how many are just wishing it away as a temporary blip.

History suggests governments and central banks would do well to sit up and take notice, but with policy coordination at its lowest ebb in decades, a coherent response is unlikely.

With almost $6 trillion (€5.5 trillion) wiped off the value of global stock markets since the start of the year and another 25% off already low oil prices, there is a real risk investor anxiety itself will be the catalyst for a world recession.