Global instability and the development project: is the twenty-first century different?

Jayati Ghosh

European Journal of Economics and Economic Policies: Intervention, 2018, vol. 15, issue 2, 193-207

Abstract: Despite a few pockets of relatively fast expansion, overall deficiency of demand characterises the world economy. The external stimulus provided by the US is declining; Europe’s net impact is negative because of the emphasis on generating current-account surpluses. While China is already a significant global economic player, it cannot adequately counter the effect of this reduced impetus from the major developed countries. Much of the developing world is relying on unsustainable debt-driven bubbles in the financially liberalised environment to generate economic recovery. Sustaining the development project will require countries to shift from export-oriented growth to more reliance on domestic demand through wage and employment increases.

Keywords: world economy; financial instability; global trade; development (search for similar items in EconPapers)
JEL-codes: B50 F40 O11 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:elg:ejeepi:v:15:y:2018:i:2:p193-207

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