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Tuesday, April 12, 2016

'Global Growth: Too Slow for Too Long'

Maurice Obstfeld on the latest World Economic Outlook from the IMF:

Global Growth: Too Slow for Too Long: Global growth continues, but at an increasingly disappointing pace that leaves the world economy more exposed to negative risks. Growth has been too slow for too long.
The new World Economic Outlook released today anticipates a slight acceleration in growth this year, from 3.1 to 3.2 percent, followed by 3.5 percent growth in 2017. Our projections, however, continue to be progressively less optimistic over time.
The downgraded forecasts reflect a broad-based slowdown across all countries. ...
Both to support global growth and to guard against downside risks to that baseline scenario, we propose a three-pronged policy approach based on monetary, fiscal and structural policies. ...
With its downside possibilities, the current diminished outlook calls for an immediate, proactive response. To repeat: there is no longer much room for error. But by clearly recognizing the risks they jointly face and acting together to prepare for them, national policymakers can bolster confidence, support growth, and guard more effectively against the risk of a derailed recovery.

    Posted by on Tuesday, April 12, 2016 at 06:52 AM in Economics | Permalink  Comments (36)


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