Governments, central banks not equipped for the next recession
While the next downturn may take longer to hit, it is likely to take an unfamiliar shape, possibly not much deeper but more enduring, as stickier inflation forces central banks and government rescue teams to the sidelines.
Over the past half century, as governments and central banks teamed up ever more closely to manage economic growth, recessions became fewer and further between. Often they were shorter and shallower than they might have been.
After so much mildness, most people cannot imagine a painfully lasting business cycle. But the global economy is heading into a period unlike any we have seen in decades.
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Financial Times
Ruchir Sharma is a writer and investor, and the author of four books, including most recently "The 10 Rules of Successful Nations". He is chairman of Rockefeller International.
