The performance of the economies of China, the United States and Europe, and their interaction over the coming months will define global scenarios for years to come. Prospects for both China and the US look brighter with faster growth as central bankers seem to have learned lessons. The European outlook, however, remains gloomy in the short and medium term.

<i>Central bankers in the most important world currency areas will be facing crucial choices over the next few months. The key to sound monetary policy consists in abstaining from sending distorted signals which could induce economic agents to make poor decisions. Growth is below expectations in the United States, but if the ...

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Professor Enrico Colombatto
The Chinese authorities maintained fast growth in the past by injecting new money and engaging in massive construction projects. The policy worked because the expansionary monetary policy did not lead to much inflation
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