Mahjong winner's curse is holding the world backThere is grave concern that the world economy is slipping into what Harvard professor and former U.S. Treasury Secretary Larry Summers calls global secular deflation. Has the global secular deflation something to do with Bretton Woods II? In simple terms, growth has slowed without inflation, despite exceptionally stimulative monetary policy. Unconventional monetary policy applied since the 2007 crisis has brought central bank interest rates to zero or negative terms in economies accounting for 60 percent of world GDP. The simple reason why the world is moving into secular deflation is that the largest economies are all slowing for a variety of reasons.

Source: The China Post July 09, 2016 16:18 UTC