The Economic Growth Of The Global Economy Essay

1488 WordsOct 20, 20166 Pages
Recap The Worlds Finance Ministers and the Governors of the Central Bank gathered for their annual global finance convocation. Due to stagnation and inadequate economic growth the mood was somber. The group did not see any options for bettering the stagnation and structural changes in the global economy. The International Monetary Fund has forecasted downward and feels the global economy is entering unexplored dangerous territory. Central Banks fear they will not be able to keep up with the possible recession. Lawrence Summers (2016), writer for the Washington Post stated that “saving has become overabundant, new investment insufficient and stagnation secular rather than transient. The paradigm surrounding economic growth with global participation fall short in the minds of the public. “Weak economics promote angry politics which raise uncertainty, leading to still weaker economics starting the cycle again. Publics have lost confidence both in the competence of economic leaders and in their commitment to serving broad national interests, rather than the interests of a global elite” (Summers, 2016). Public sentiments should not be ignored as the economy is driven in part by consumer behaviors. Although there is a decline of trade barriers and technological changes have made it easier to do business globally. There is still the perception of those who are responsible for managing growth. Summers thinks that the challenge can be met and he concludes discussing a patch to
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