The Anatomy of Global Economic Uncertainty
Uncertainty is bad for business, and policy gridlock, unsustainable debt and a changing global order promise unsettling times for the developed world, suggests Mohamed A. El-Erian in an essay for Project Syndicate. Countries, corporations and individuals are adjusting to the changing paradigm in diverse ways – deleveraging themselves from others in debt, taking on more debt and toying with default, manipulating interest rates and inflation to allow creditors to subsidize debtors, and calling for deregulations or new regulations to boost growth or spread benefits. “Unlike emerging economies, Western countries are not well equipped to deal with structural and secular changes – and understandably so,” writes El-Erian. “The longer they fail to adjust, the greater the risks.” Countries may fail to adapt, but that does not mean individuals must do the same. El-Erian concludes that the changing global paradigm presents many opportunities as well as risks. – YaleGlobal
The Anatomy of Global Economic Uncertainty
Countries, corporations and citizens respond in diverse ways to changing global paradigm
Wednesday, December 28, 2011
Mohamed A. El-Erian is CEO and co-CIO of PIMCO, and author of When Markets Collide.
http://www.project-syndicate.org/commentary/elerian11/English
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