Adam S. Posen delivered a talk titled "The Old Normal for the World Economy" at the Lee Kuan Yew (LKY) School of Public Policy. Razeen Sally, visiting associate professor at the LKY School, chaired the event.
After the North Atlantic financial crisis, Posen argues that the world is returning to a state much more like the late 19th than the 20th century, at least in economic terms. In his view, this is a world where globalization continues but is less rules-based than it was under clearer US hegemony. Poor countries are likely to continue to catch up with the rich, and probably do so even faster, but the richer countries are likely to grow more slowly. Macroeconomic conditions are bumpier in real terms, sustained inflation is rare, and multiple reserve currencies will emerge. Read more at the LKY School website.