Ambrose Evans-Pritchard: Close to Global Recession
Ambrose Evans-Pritchard, distinguished International Business Editor of The Daily Telegraph, has just published an article pointing out that the global economy is a lot closer to recession than many may be willing to acknowledge, and highlights risks we now face in this age of ZIRP.
The Daily Telegraph
HSBC fears world recession with no lifeboats left
The world authorities have run out of ammunition as rates remain stuck at zero. They have no margin for error as economy falters.
The world economy is disturbingly close to stall speed. The United Nations has cut its global growth forecast for this year to 2.8pc, the latest of the multinational bodies to retreat.
We are not yet in the danger zone but this pace is only slightly above the 2.5pc rate that used to be regarded as a recession for the international system as a whole.
It leaves a thin safety buffer against any economic shock - most potently if China abandons its crawling dollar peg and resorts to 'beggar-thy-neighbour' policies, transmitting a further deflationary shock across the global economy...
The Daily Telegraph
HSBC fears world recession with no lifeboats left
The world authorities have run out of ammunition as rates remain stuck at zero. They have no margin for error as economy falters.
The world economy is disturbingly close to stall speed. The United Nations has cut its global growth forecast for this year to 2.8pc, the latest of the multinational bodies to retreat.
We are not yet in the danger zone but this pace is only slightly above the 2.5pc rate that used to be regarded as a recession for the international system as a whole.
It leaves a thin safety buffer against any economic shock - most potently if China abandons its crawling dollar peg and resorts to 'beggar-thy-neighbour' policies, transmitting a further deflationary shock across the global economy...