“Macroeconomic stability will be more elusive and that will affect all of our lives: from the risks many will face in childhood, to the security of employment at working age, to the challenge of accumulating for retirement. More financial instability will introduce more uncertainty all down the line, and that will be a very different world than the one we would have lived in only a couple of decades ago.” WorldDifferentAgeFacesChallengesLinesOur LivesRiskChildhoodSecurityCoupleFinancialDecadesEmploymentUncertaintyRetirementStabilityIntroducingElusiveDifferent WorldsInstabilityMacroeconomics Author:Alan M. Taylor
“We may end up with a world based more on equity than debt, or more on market debt instruments than bank intermediation; but how and why we get there is a mystery. Absent significant regulatory or tax changes, and a sharp transition could be disruptive.” WorldMayEndsMysteryTaxesInstrumentsDebtSignificantTransitionEquityAbsentDisruptive Author:Alan M. Taylor
“A possibility is that we see more and more leverage, and credit-to-GDP ratios rise once more to even higher levels; eventually the banking systems of all advanced economies reach magnitudes of 500 percent, 1000 percent or more of GDP, so that every economy starts to have financial systems that resemble recent cases like Switzerland, Ireland, Iceland, or Cyprus. That might be a very fragile world to live in.” WorldMightLevelsCasesEconomyPossibilityHigherPercentFinancialCreditFragileIrelandBankingMagnitudeHigher LevelRatiosSwitzerlandGdpBanking SystemFinancial SystemIcelandCyprus Author:Alan M. Taylor