Econo- Development

five years after the onset of the global financial crisis the world economy remains in a state of disarray. strong expansionary monetary policies in the major developed economies have not succeeded in fostering credit creation and strengthening aggregate demand. fiscal austerity and wage compression in many developed countries are further darkening the outlook, not only for the short term, but also for the medium term. the burden of adjustment of the global imbalances that contributed to the outbreak of the financial crisis remains with the deficit countries, thus strengthening deflationary forces in the world economy.