Tips for policymakers in the New Normal world

The global economic recovery from the great recession of 2008 is fast losing momentum, and there is a growing fear that the authorities are relatively powerless to turn things around. In the developed economies there is little monetary firepower left, while the fiscal alternative is severely constrained by already dangerously-high levels of public debt. In the emerging economies high levels of inflation and a debt hangover from the 2008/09 stimulus packages limit their policy options. Is there really nothing that can be done? New Normal One thing that must be recognised is that t...