Over 70% characterize the current state of the Global Economy as weak

Vladimir Popov brings decades of policymaking and analytical experience to bear on the current state of the global economy. He argues that while the global economy is highly unstable, capitalism itself is not in crisis. In fact he suggests that there have been periods in recent history when socioeconomic instability has been greater than today. On the other hand, he points to the dramatic decrease in the ...

The current state of the globaleconomy underlines the continued importance of thisapproach.

"The summit agenda includes the current state of the global economy, sustainable growth, development and climate change, investment, trade and energy," Ibrahim Kalin, President Erdogan's spokesperson, said.

We also discuss the current state of the global economy.

And yet, no more concise explanation of the current state of the global economy exists "The summit agenda includes the current state of the global economy, sustainable growth, development and climate change, investment, trade and energy," Ibrahim Kalin, President Erdogan's spokesperson, said.

The Current State Of The US Economy | World Financial Watch

This article is contributed by The Insight Bureau. Called the 'GEMS Close-Up Report', these reports take a succinct but penetrating look at the current state of the global economy and the emerging markets. This particular report was jointly written by Dr Yuwa Hedrick-Wong who is a member of The Insight Bureau network of economics speakers.

United States; Britain; Europe; ..


I take this opportunity to reiterate our confidence about GLV’s outlook for the mid term and long term, even if we remain cautious as to our short-term horizon given the current state of the global economy. I don’t believe that the economic turmoil is over yet. However, I am confident that we have taken the right steps and that we will continue to make the necessary decisions to consolidate and reinforce GLV’s foundations.The lecture, titled “A Historical Perspective on the Financial Crisis,” was sponsored by the Bendheim Center for Finance and Princeton University Press. The lecture took place in a packed McCosh 50.

Having an individual, a company or a central bank willing to lend to banks is key in responding to financial panics, Bernanke noted. Being a lender of last resort is critical to preventing bank runs, he noted.

Bernanke compared 1907 with the response to the 1914 panic, which was more effective because the Treasury leveraged its power to create emergency currency, which prevented the banks from collapsing. Because of very rapid and comprehensive lending, no banks failed and no recession followed.

While the most recent financial crisis of 2007-09 presented a more sophisticated, globalized context, the comparison between 1907 and 2007 is valid because the crises are conceptually similar.
Bernanke then outlined the six common fundamental characteristics of financial panics: triggers, runs on short term funding, liquidity concerns, fire sales of risky assets, contagion, and contraction.

Triggers of financial panics are often small; although 1907 featured one of the sharpest recessions in U.S. history, Bernanke noted that the 1907 panic was triggered by a comparatively trivial incident – the cornering of United Copper Stock.

The lack of liquidity in financial markets is largely due to bank runs. Then with contagion, panic spreads to entire system through interconnections between financial institutions.

Such financial crises have significant impacts on the economy because they can lead to an adverse feedback loop, giving way to economic decline, he explained.

Looking at the current state of the global economy, Bernanke said that while the U.S. recovery is not as strong as we would like, the main weakness is still in the global economy.

Bernanke also noted that the GDP of the U.S. has reached levels higher than its pre-crisis peak, while the Eurozone has not yet recovered to its pre-crisis level, largely – so he claimed -- due to differences in monetary and/or banking policies.

Honing in on China, he noted that the Chinese slowdown is an inevitable part of its transition from a top-down, semi-centrally planned economy to a more organic, market-driven economy. This is not unexpected, Bernanke noted, but what is more surprising is that other emerging markets, especially commodity producers, have been hit.