Three ‘Seismic Shifts’ in the Global Economy and the Policy Challenges They Pose

• Published date: 01 June 2016
• Date: 01 June 2016
• DOI: http://doi.org/10.1111/infi.12089
• Author: Kiyohiko G. Nishimura

COMMENTARY

Three ‘Seismic Shifts’in the

Global Economy and the Policy

Challenges They Pose

Kiyohiko G. Nishimura

Professor of Economics, University of Tokyo, Former Deputy Governor,

Bank of Japan.

I. Introduction

Seven years after the global financial crisis, d eveloped economies have still n ot

returned to their pre-crisis growt h rates, and ma ssive monetar y easing program mes

remain underway i n many countries. Alt hough emergin g economies were relat ively

resilient during the cri sis, they also have begun to show sig ns of a significant

slowdown. Growth is sluggish around the world.

This disappointing g rowth is the result of three seis mic shifts in the glo bal

economy. First, the property booms and bust s of the last decade, a s well as the

This article is a sli ghtly modified English version of Nishimura (2016). The research reported he reis

financially supported by JSPS KA KEN grant number 25220502.

International Finance 19:2, 2016: pp. 219–229

DOI: 10.1111/infi.12089

© 2016 John Wiley & Sons Ltd