The paper ‘Deleveraging and global growth: A call for coordinated macroeconomic policies’ is published based on the discussions at the Asia Europe Economic Forum (AEEF) conference, ‘European Troubles, Asian Worries’, on 21-22 January 2013, in Bruegel, Belgium.
The paper focuses on the key issue of deleveraging and its impact on global growth. Co-authored by renowned economists from Asia and Europe, the paper examines the impact that rising stock markets and decreasing spreads on sovereign bonds in the euro area can have on the contribution from advanced economies towards more robust global growth.
The paper discusses the remaining deleveraging that firms, households, sovereigns and banks have to undergo and the potential impact that will have on the demand shortfall of advanced economies. Using insightful data from the McKinsey Global Institutes recent study on Debt and Deleveraging, the paper goes on to look at interesting developments in private and public debt in both Asia and Europe.
To read the full report click here.
The Asia-Europe Foundation (ASEF) joined the AEEF consortium in January 2013. The next conference will take place in Beijing, China in October 2013. For more information, click here.