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How to get global growth back
15 October 2015
The IMF recently revised down global growth. After years of Quantitative Easing (QE) and a now
weakening US economy, it is no longer clear what can be done to raise growth rates. Policy makers in
developed economies have largely run out of ammunition and appetite for reform is non-existent.
How can global policy makers get the global economy back to positive momentum?
Here is a suggestion. The Fed and other QE central banks should embark on a modest program of
Emerging Markets (EM) asset purchases, notably local currency government bonds and infrastructure
investments. As a complement to asset purchases, the Fed may have to consider introducing negative
policy rates as well.