Caixin
Jan 22, 2019 06:43 PM
OPINION

Opinion: World Economy Shows Less Resilience to Future Financial Shocks

Ten years after the global financial crisis, the world economy remains ill-prepared for the possibility of a repeat event. Photo: VCG
Ten years after the global financial crisis, the world economy remains ill-prepared for the possibility of a repeat event. Photo: VCG

I do not think the global economy has become more resilient. On the contrary: Ten years after the 2008-09 global financial crisis, the world economy remains ill-prepared for the possibility of a repeat event. While every bank and economic research house is busy making point forecasts — we as well — the key in my view is defining “resilience” as the capacity of a system to regenerate after a significant shock event. Shock buffer capacity is a blend of quantitative and qualitative factors, including trend growth, public and private debt stocks, institutional stability, etc.

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