Recovery of growth is doubtful

Recovery of growth is doubtful

Continued contraction of industrial output and export growth in February-March indicates that a recovery is unlikely soon
Policy coordination in the era of easy money

Policy coordination in the era of easy money

The US Fed should be sensitive to the spillover effects of its policy measures on other countries
Exiting a low-interest rate world

Exiting a low-interest rate world

Central banks should set a higher inflation target. This will let them cut nominal interest rates in a slowdown
Taming the China bears

Taming the China bears

The distinctiveness of China’s economy means that assessing its current state requires an analysis that accounts for as many offsetting factors as possible
Getting India back on track

Getting India back on track

Progress requires a deep commitment to restoring the centrality of markets in economic decision-making

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African fable

Zimbabwe is battling deflation. Prices have fallen for two months in a row. This is a far cry from the hyperinflation that wrecked its economy six years ago. The Zimbabwean central bank had to print currency notes worth 100 billion Zimbabwe dollars as prices galloped by the day. Comparisons were drawn with the German hyperinflation that eventually destroyed the credibility of the democratic Weimar Republic.
Zimbabwe finally abandoned its national currency. Citizens were allowed to use foreign currencies for their daily use. The country has not had its own currency since 2009. That unusual step helped rebuild the economy.
The sort of inflation in Zimbabwe is a rarity. Few countries with good central banks will lose complete control over prices. But there are two broad lessons even for better-run countries. First, policy credibility is essential for people to trust the value of a currency. Second, the solution to generalized inflation is eventually monetary.
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