Looking at the economic regimes of different parts of the world, it seems that the worst is over for the entire seven billion plus population of the world. If scrutinized minutely, though the world economy doesn’t look glorious, it could be felt that the world is headed to make current decade, i.e., 2010-20, much more rewarding and prosperous, leaving the harsh reminisces of 2008 financial crisis. Despite, the world’s largest economy, USA, has been recouping from economic meltdown, policy makers from Euro zone constantly working to bring back the economy in momentum with the theme of “taking every stand” and China, recovering from plummeted last year, the world economy, at this juncture of economic time line, gives the impression of having ‘foregone economic pessimism’.
How the world financial markets would look by the end of 2015? The question remains as a big challenge to the global policy makers. If we make an assessment on current sizeable monetary policy accommodation being exercised by major supreme economies (USA, Euro zone, China, Japan etc.), the next generation of global inflation appears to be inevitable. Despite, the stimulus measures may facilitate investment environment and support employment growth rates, the entire global financial system will surely have to bear the effects of acute inflation. It is obvious that current Quantitative Easing (QE) or monetary stimulus measures to strike back at some point of time, when the treasuries and asset holdings of central banks of major economies reaches a resistance level.
Compared to Western economies and financial industries, Asian financial market looks much more stable and optimistic. With China and India exhibiting tremendous growths in manufacturing and service sectors, the surrounding economies are also eventually benefiting from their ‘economies of scale.’
In this way, on one hand global economy is showing the sign of getting vibrant whereas on the other hand tough road lies ahead for the all major global economic powerhouse to deal with the uncertain and unexpected events that have been striking the global economy time and again. |