12 February 2010

World economy - difficulties and pain ahead

Those who had assumed the 'back to normal' or the newly coined cliche of 'the new normal' better watch out. There is still so much of pain left in the western markets, it is impossible to ignore what will happen over the next few months and years. The Economist has a fantastic special report on the difficulties ahead - I am linking some of the better pieces below (subscription required to read):

The safety-net frays
Governments used to worry about their banks. Now the reverse is also true

Not so risk-free
Which countries have the biggest problems?

New dangers for the world economy
When the crisis started, governments helped save the world economy. Now they are the problem

Withdrawing the drugs
Policymakers are wondering when and how to start a delicate task: weaning the world economy off fiscal and monetary stimulus

The gods strike back
Financial risk got ahead of the world’s ability to manage it. Matthew Valencia (interviewed here) asks if it can be tamed again

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