Two Cheers for the New Normal

According to conventional wisdom, global economic conditions are bleak, with developed countries stagnating and emerging economies beginning to flounder. But, though global growth has slowed since this century's heady first years, by recent historical standards, the last four years look relatively good.

JAKARTA – The conventional wisdom about the state of the world economy goes something like this: Since the start of the 2007-2008 financial crisis, the developed world has struggled to recover, with only the United States able to adjust. Emerging countries have fared better, but they, too, have started to flounder lately. In a bleak economic climate, the argument goes, the only winners have been the wealthy, resulting in skyrocketing inequality.

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