Computer keyboard with globe icon

New Year’s Resolutions for the Global Economy

Over the past year, global growth has been anemic – and the forecast for the coming year is only slightly better. Clearly, world leaders need to take strong action to boost incomes and expand opportunities for their people.

STANFORD – Over the last year, global growth has been anemic – and the forecast is only slightly better for 2016. Something must be done to boost incomes and expand opportunities for people everywhere. Here are some economic resolutions that could bring good cheer in the new year and beyond.

Let us begin in Europe. Despite the European Central Bank’s monetary accommodation, a sharp depreciation of the euro, and negative short-term interest rates, the European economy remains in the doldrums.

In 2016, Europe’s leaders must stop expecting monetary policy to solve their problems, and instead pursue faster, firmer resolutions to the myriad crises they face, from the intertwined growth, banking, currency, and governance crises to the escalating refugee crisis, which is threatening free movement across internal borders. They must pursue supply-side fiscal, structural, labor-market, and regulatory reforms, with common-sense solutions for the struggling periphery economies’ fiscal crises and the stronger economies’ medium-term debt woes topping the agenda.

To continue reading, please log in or enter your email address.

To access our archive, please log in or register now and read two articles from our archive every month for free. For unlimited access to our archive, as well as to the unrivaled analysis of PS On Point, subscribe now.

required

By proceeding, you agree to our Terms of Service and Privacy Policy, which describes the personal data we collect and how we use it.

Log in

http://prosyn.org/pyP3hzg;

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated cookie policy and privacy policy.