Raghuram Rajan | Bracing for stagnation4 min read 01 Jan 2015, 01:18 AM IST
Policymakers would be wise to understand the factors underlying the global economy's anaemic performance
As 2014 ends, the global economy remains weak. The US may be seeing signs of a strengthening recovery, but the euro zone risks following Japan into recession, and emerging markets worry that their export-led growth strategies have left them vulnerable to stagnation abroad. With few signs that 2015 will bring any improvement, policymakers would be wise to understand the factors underlying the global economy’s anaemic performance—and the implications of continued feebleness.