Out of Ammunition to Combat Recession?
The next recession probably will not be as bad as the last one; but unprecedented long-term monetary stimulus and spikes in public-debt burdens have left governments unequipped to deal with an economic downturn. Gradual monetary-policy normalization and fiscal consolidation are the only prudent options now.
https://prosyn.org/2lOFKDG
STANFORD – Economic forecasts for 2017 project continued frailty in the global economy, and subpar growth for most countries and regions. Obvious economic problems include Europe’s weak banks, China’s distorted property market, political uncertainty in the West, historically high private and public debt – 225% of GDP, according to the International Monetary Fund – and the reluctance of heavily indebted Greece and Portugal to comply with IMF programs.