"The existence of .... imbalances also implies that an extrapolation of
pre-crisis growth is neither the correct matrix by which to assess the state of
the recovery nor a useful guide for policy"the report goes on to misdirect the reader
but this point is clear
THE STAG PARTY IS IN THE SADDLE
"Aggregate supply and demand seem
to be roughly balanced on a global scale. But having declined during the crisis,
current account balances are increasing again. That means domestic demand
is too high in some countries and too low in others"translation
domestic demand is still too low in china and too high in the states
spells stag here boom there
at least in nominal terms
china may use more inflation and less real growth
the us no deflation and ultra low growth
