- January 9, 2023
- Posted by: Stratford Team
- Category: Economy
(Bloomberg) — The world economy looks to be transitioning to a more difficult era where interest rates will be higher, geopolitical tensions greater and uncertainties more pronounced.
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That’s the message that emanated from this year’s annual meeting of the American Economic Association in New Orleans. Economic luminaries — including former US Treasury Secretary Lawrence Summers, ex-International Monetary Fund chief economist Kenneth Rogoff and former Bank of England policymaker Kristin Forbes — warned of perils ahead.
On the way out is an era of ultra-low interest rates and rapid Chinese growth. Investors and policymakers will instead confront a new world where an intensifying US-China rivalry and dangerous debt blow-ups are more the norm.
“We live in an era of many shocks,” said Rogoff, a Harvard University professor. “We may be at a turning point for the global economy.”
The warnings of longer-term trouble come as…
