ghosh46_DANIEL LEALPOOLAFP via Getty Images_mia amor mottley cop26 sdr DANIEL LEALPOOLAFP via Getty Images

Free the Money We Need

One major reason for the highly uneven global economic recovery is the huge variation in fiscal responses between rich countries and the rest of the world. An annual issuance of special drawing rights, the International Monetary Fund’s reserve asset, could help to bring about a more equitable and climate-friendly rebound.

NEW DELHI – The main factor limiting the global recovery is not the much-discussed increase in inflation in advanced economies, which is likely to be transient, but rather the massive inequalities between most rich countries and the rest of the world, with the exception of China. These disparities, by constraining the expansion of global effective demand, keep some poorer economies mired in stagnation, and eventually will affect investors in richer countries as well.