It is difficult to disagree with the growing consensus that the world economy is finally stabilizing. The oft-repeated question is whether this recovery will be gradual or quick.
International Monetary Fund (IMF) chief Dominique Strauss-Kahn visited some of these issues in a talk he gave in Berlin on Friday. His view is that the recovery could be sluggish and will not create new jobs.
But the IMF chief also speculated on new sources of growth that could power the world economy once private spending revives.
Strauss-Kahn put forward an intriguing possibility. “Advances in green technology could even become the microprocessor revolution of tomorrow—while at the same time helping address global climate change,” he said.
There is no doubt that monetary policies fan booms and busts. But it is also true that technology shocks cause huge economic dislocations as new technologies come into our lives. Think cars, plastics and microprocessors.
Will green technology lead the next economic boom?