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World Economy Doing Worse in Practice Than Theory Suggests

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Photographer: Brent Lewin/Bloomberg

Easy monetary policy, a halving of the price of oil and sliding currencies in many parts of the world should be a recipe for faster economic expansion.

Yet when the International Monetary Fund released forecasts on Tuesday it left its prediction for global growth this year unchanged at 3.5 percent. That’s less than the 3.9 percent it estimated a year ago before oil plunged, the dollar rose and the European Central Bank began quantitative easing.