The Risks ahead for the World Economy
Fred Bbergsten explains why policymakers need to act now in order to avert the danger of serious damage to the world economy.
FIVE major risks threeten the world economy.Three centre on the United States: renewed sharp increases in the current-account deficit leading to a crash of the dollar; a budget profile that is out of control; and an outbreak of trade protectionism. A fourth relates to China, which faces a possible hard landing from its recent overheating. The fifth is thst oil prices could rise to $60-70 per barrel even without a major politikal or terrorist disruption, and much higher with one.…
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