The global economy has entered unexplored, dangerous territory
In this image released by the International Monetary Fund, IMF Managing Director Christine Lagarde speaks at the meeting of the 24 members of the International Monetary and Financial Committee on Oct. 8. (Stephen Jaffe/AFP/Getty Images)
By Lawrence Summers October 9 at 7:59 PM
As the world’s finance ministers and central-bank governors came together in Washington last week for their annual global financial convocation, the mood was somber. The specter of secular stagnation and inadequate economic growth on the one hand, and ascendant populism and global disintegration on the other, has caused widespread apprehension.
Unlike in 2008 (when the post-Lehman Brothers crisis was a preoccupation) or 2011 and 2012 (when the possibility of the collapse of the euro system concentrated minds), there was no imminent crisis. Instead, the pervasive concern was that traditional ideas and leaders are losing their grip and the global economy is entering unexplored and dangerous territory. [Read more]