The world economy’s challenges are formidable enough that even the so-so can be cheered. Developments that not so long ago would be seen as the bare minimum required to put a floor under dwindling growth are now regarded as encouraging. Grasping at straws? Thankfully, there may be more to it.
In recent days, Beijing has recalibrated the Covid-Zero strategy that has been a major brake on commerce, and developed plans to rescue the collapsing property sector. Leaders of the US and China set a more positive tone for relations after meeting in person on Monday. Federal Reserve officials supported expectations that the most powerful central bank will shift to less gargantuan interest-rate hikes, while the dollar has lately retreated from the stratospheric levels that led to strains in global finance.
