We use cookies to provide some features and experiences in QOSHE

More information  .  Close
Aa Aa Aa
- A +

A toxic cocktail for the world economy

19 0 0
12.10.2018

If one were superstitious, one would have to speak of a bad omen: Just when the who's who of global finance gathered on the famous Indonesian resort island of Bali to discuss the current state of the world economy, the earth beneath their feet began to shake. The start of this year's International Monetary Fund-World Bank Group annual meeting was greeted by a magnitude 6.4 earthquake that struck off the coast of the island.

It didn't cause significant physical damage, but hardly anyone doubts the potential for damage to the global economy by the dangerous mix of developments that have been shaping up over the past few months.

Read more: IMF: Risks to global financial system rise

The loudspeaker in the White House

Coinciding with the earthquake in Indonesia is, once again, the volcano from Washington: "I think the Fed has gone crazy," fumed US President Donald Trump, who has increasingly taken aim at the US central bank.

But there are plenty of reasons why central banks should be independent in carrying out their responsibilities. And governments, including elected presidents, should hold back and not interfere with monetary policy. Trump is bothered by the Federal Reserve's interest rate hikes. But the Fed's policymakers make their interest rate decisions neither according to whim nor to annoy the president. Instead, their decisions are guided by a sober examination of the economic data. The figures now show that the US economy could face the........

© Deutsche Welle