Macrobius
03-01-07, 16:43
http://www.ft.com/cms/s/7e2e6dc6-ac18-11db-a0ed-0000779e2340.html
Complex finance and the brave new world economy
By Mohamed El-Erian
Published: January 25 2007 02:00 | Last updated: January 25 2007 02:00
Much of the discussion at the World Economic Forum in Davos has two themes. First, the continued robustness of the global economy as defined by sustained high growth and low inflation. Second, the steady rise in economic and financial risks.
The tendency is to treat these themes as competing and engage in aninteresting but inconclusive debate about their relative merits. A better approach is to recognise that these themes are consistent with structural changes in the world and seek torecalibrate the perspective used for defining the way forward.
In the past few years there has been an acceleration in the realignment of the global economy. Two developments have been particularly important. First, the productivity shock resulting from the absorption into the global labour force of massive numbers of workers in emerging economies; and second, the increase in commodity prices that has transferred wealth to raw material exporters mainly in the emerging world.
...
Response by Douglas V. Gnazzo
http://www.honestmoneyreport.com/archives/2007/0216.pdf (PDF)
of
http://www.honestmoneyreport.com/index.php
Complex finance and the brave new world economy
By Mohamed El-Erian
Published: January 25 2007 02:00 | Last updated: January 25 2007 02:00
Much of the discussion at the World Economic Forum in Davos has two themes. First, the continued robustness of the global economy as defined by sustained high growth and low inflation. Second, the steady rise in economic and financial risks.
The tendency is to treat these themes as competing and engage in aninteresting but inconclusive debate about their relative merits. A better approach is to recognise that these themes are consistent with structural changes in the world and seek torecalibrate the perspective used for defining the way forward.
In the past few years there has been an acceleration in the realignment of the global economy. Two developments have been particularly important. First, the productivity shock resulting from the absorption into the global labour force of massive numbers of workers in emerging economies; and second, the increase in commodity prices that has transferred wealth to raw material exporters mainly in the emerging world.
...
Response by Douglas V. Gnazzo
http://www.honestmoneyreport.com/archives/2007/0216.pdf (PDF)
of
http://www.honestmoneyreport.com/index.php