The Economist US Edition || Prospects for the international economy are discussed this week
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| The Economist US Edition |
Prospects for the international economy are discussed this week
- However, as our special study this week outlines, they also signal the painful birth of a new regime in the global economy. A shift that may be as significant as the advent of Keynesianism after World War II and the 1990s, which turned toward free markets and globalization.
- The decade of economic comfort ended in the 2010s. A financial system accustomed to low rates wakes up to the skyrocketing cost of borrowing.
- It is threatened with imminent collapse. But if you look further into the future, the main trends in the 2020s and 2030s are towards more government (as spending on health care, defence and energy infrastructure increases).
- When real interest rates remain low (as ageing populations in rich countries accumulate additional savings). For central banks, this is a serious problem. Should they also change their 2% inflation target to, say, 4% instead?
The Economist US Edition
A sizable government budget and high inflation will usher in a whole new world with both potential and risks. Now is the time to start analyzing them, as well as what they mean for both consumers and companies.
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