Thursday, July 15, 2010
World at Risk of Folding in on Itself: Deputy Doom
The global economy is at risk of folding in on itself unless policy makers face up to the threat of inflation and exchange rate inflexibility, according to Arun Motianey, director of fixed income strategy at Roubini Global Economics.
A Japan-like outcome is a big risk for the developed world with deflation a big danger, he said.
Recent figures show that the recovery is sputtering in the US while China's booming growth has slowed down slightly, as Beijing unwinds stimulus measures.