Top economists, politicians, and global leaders assemble in chilly Davos, Switzerland at 2013’s World Economic Forum(WEF) to discuss prospects for the global economy. NYU Stern Professor Michael Spence was noted in the Financial Times discussing some elements of WEF’s policy recommendations. While most have supported policy recommendations that favor decreasing austerity measures to promote more spending power in European and US economies, Spence argues that politics still reigns to check the power of markets.
Some of this free thinking was, however, tempered by Michael Spence, professor at the Stern School of Business, New York University, who cautioned that economic policy is always rooted in political systems. “In Europe we need to get through a few elections without a major disruption of the reform programs needed to continue the stabilisation of bond markets,” he said.
FT describes the world economy as slowly recovering from a financial crisis hangover and discusses various top officials’ opinions for a remedy. A Bloody Mary? Policy reforms? Greasy breakfast? Debt writedowns? Leaders will discuss more policy recommendations on their final day tomorrow. The five day program focuses on three pillars: Leading through Adversity, Strengthening Societal Resilience, and Restoring Economic Dynamism.
Read more about FT’s article on the World Economic Forum.