The article talks about how it is predicted that this year (2014), the global economy is going to experience economic growth in USA and other majorly developed countries. It is also predicted that there might be deflation to follow which might be a problem as recovery from this deflation.
The global economy is supposed to increase by 3.2% which is an 0.8% from last year. The World Bank forecast was that the majorly developed countries will grow more this year i.. 2.2%. The article further suggests that there will be growth in the developing countries such as China and India and though it will not be on a large scale, it will still be economic growth.
Moreover the article talks about how the federal reserve has reduced the monthly bond-buying stimulus program which leads to the possible risk of reducing the capital and capital flow and a reversal of monetary policy in developing countries would lead to a hinder in the economic growth that is predicted.
What I find most interesting about the study of the global economy is that today, nearly every country in the world is affected by what happens in other countries. The United States, with one of the world’s largest economies, exerts great influence upon international politics and economics; essentially, anything that happens in the U.S. economy will affect international finances in a significant way. This can be both good and bad: when the U.S. economy is experiencing economic growth, so too can much of the world, but when the U.S. economy is experiencing economic downturn, other countries across the globe may also suffer. Even more fascinating is how the Federal Reserve’s decisions impact the global economy; it is because of this that Janet Yellen is often considered one of the most powerful individuals in the world.
ReplyDeleteI do find it interesting the effect that the US economy has on the world. If the US economy is doing well, this positivly influences the entire global economy. With around 800,000 more job openings available since Janurary in the US, this raises worker's income which leads to more consumer spending which is the driving force behind the growth of the US Economy. This rise in job openings in the US has helped not only our economy, but many other countries economies too.
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