Michael Spence writes: \u00a0The global economy is settling into a slow-growth rut, steered there by policymakers\u2019 inability or unwillingness to address major impediments at a global level. Indeed, even the current anemic pace of growth is probably unsustainable. The question is whether an honest assessment of the impediments to economic performance worldwide will spur policymakers into action.<\/p>\n
For starters, governments must recognize that central banks, however well they have served their economies, cannot go it alone. Complementary reforms are needed to maintain and improve the transmission channels of monetary policy and avoid adverse side effects. In several countries \u2013 such as France, Italy, and Spain \u2013 reforms designed to increase structural flexibility are also crucial.<\/p>\n
Furthermore, impediments to higher and more efficient public- and private-sector investment must be removed. And governments must implement measures to redistribute income, improve the provision of basic services, and equip the labor force to take advantage of ongoing shifts in the economic structure.<\/p>\n
Generating the political will to get even some of this done will be no easy feat. But an honest look at the sorry state \u2013 and unpromising trajectory \u2013 of the global economy will, one hopes, help policymakers do what\u2019s needed. \u00a0Stimulating Global Growth<\/strong><\/a><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Michael Spence writes: \u00a0The global economy is settling into a slow-growth rut, steered there by policymakers\u2019 inability or unwillingness to address major impediments at a global level. Indeed, even the current anemic pace of growth is probably unsustainable. The question … Continue reading