Introduction

Abstract

In April 2013, the International Monetary Fund (IMF 2013) reported that global prospects have improved but the road to recovery in the advanced economies will remain bumpy. World output growth was predicted to reach 3.25 % in 2013 and 4 % in 2014. In the major advanced economies, activity is expected to gradually accelerate, with the United States taking the lead. However, in the Euro area, there remain risks pertaining to adjustment fatigue, insufficient institutional reform, and prolonged stagnation (IMF 2013). With high fiscal deficits and debt, the United States and Japan need to devise and implement fiscal consolidation plans. Nevertheless, policies have supported a modest growth pickup in some emerging market economies and global growth could be stronger if financial conditions continue to improve. In the wake of the 2008 financial crisis, it is valuable to reflect upon what happened during the last few years in order to gain some insights for future preventive actions.