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Strategy to Face Global Crisis
The increase in international interest rates is the result of major countries ending their liquidity-pumping policy, or Quantitative Easing, to recover from the 2008-2009 global financial crisis. The central banks bought state bonds and high-quality private securities through QE.
Five recent issues have the potential to cause new international economic turmoil.
They are: 1) increase in international interest rates; 2) increase in world inflation; 3) high debts among businesses, individuals and governments in several countries; 4) President Donald Trump\'s unilateral and protectionist trade policy that goes against WTO rules; and 5) reduced US income tax.