"June 9 (Bloomberg) -- Risks to the global economic outlook have “risen significantly” and policy makers have limited room to provide support to growth, International Monetary Fund Deputy Managing Director Naoyuki Shinohara said.I think we all knew that the past year recovery was essentially due to historically low interest rates that gave some oxygen to debt-trapped consumers and the keynesian intervention of states that pushed futher in the red their budget deficit.
Most advanced economies are experiencing a “subdued” recovery, Shinohara said in a speech in Singapore today. “A key concern is that the room for continued policy support has become much more limited and has, in some cases, been exhausted.”"
So yes, the economy recovered or let's stay stabilized but at what a cost? Today we learned in the case of the Finnish economy that it is still contracting even with the massive stimulus and guarantee that have been injected in it.
Worryingly the only thing that keep growing and steadely is the "True Fins" Party - the Finnish far right party that seems to get more and more partisans. Hope this is not the canary in the coal mine.
So what's left to policy makers and what's next?