Economics
No Room for Mistakes as World Economic Waters Turn Choppy
- Weak demand creating 'unforgiving' environment, Carney says
- Lagarde says China's economic transition will be bumpy
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For years, the global economy surfed a flood of easy money from central banks and a surge in Chinese demand for commodities. Now, policy makers are trying to anticipate what’s exposed when the tide goes out.
“This is a pretty unforgiving environment,” and “not a type of economy in which one can make mistakes,” Bank of England Governor Mark Carney said Thursday at annual meetings of the International Monetary Fund and World Bank in Lima. “Everybody needs to recognize there isn’t going to be a big surge of demand from abroad.”