| Fundamental downward shift in advanced countries’ demand leads to fiscal supplementation of monetary policy efforts. While the world economy once more appears worse in the year’s second half, a regular feature of global growth forecasts from 2011, economic assessments and policy choices have reached a turning point.
Opinion across the board, including that of the International Monetary Fund (IMF), is convinced that the advanced countries are trapped in ‘secular stagnation’—this is underpinned by a trend decline in real interest rates from fundamental forces like demography (ageing), slowing productivity growth, lower public investments, and so on..............................................Full Article: Source |