Mohamed a el Erian writes: The world is increasingly characterized by divergence, in economic performance, financial policy and financial markets.\u00a0 We are on a very bump road to globalization.<\/p>\n
Experimental policies in the advanced markets, like the Euro-zones large-scale asset purchases,were able to slow a vicious cycle of subpar economic performance. \u00a0 At the same time, the US Federal Reserve is exiting from these policies.\u00a0 Market forces have led to dramatic shifts in exchange rates.\u00a0 Even healthy economies like South Korea are willing to lower the value of their currency and leave the US standing alone.<\/p>\n
Political leaders worldwide seem unwilling to perform their economic governance responsibilities.\u00a0 These include structural reforms to revamp the growth engines, efforts to rebalance aggregate demand, and elimination of debt overhangs.\u00a0 This probably arises from ‘inertia’ politics —\u00a0 a “can’t, won’t, shouldn’t’ mentality.\u00a0 Leaving central banks and market forces to govern the globe is simply not enough.<\/p>\n","protected":false},"excerpt":{"rendered":"
Mohamed a el Erian writes: The world is increasingly characterized by divergence, in economic performance, financial policy and financial markets.\u00a0 We are on a very bump road to globalization. Experimental policies in the advanced markets, like the Euro-zones large-scale asset … Continue reading