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Financial Markets

Why investors may need to lower their sights

– The forces that have driven exceptional investment returns over the past 30 years are weakening, and even reversing. It may be time for investors to lower their expectations.


The flow of governance: An interview with Don Tapscott

– Many of the world’s problems often seem intractable. Yet as strategy consultant Don Tapscott explains, there are also new... ways of solving them.

The flow of value: An interview with Michael Spence

– Emerging economies are creating extraordinary shifts in wealth, supply, and demand. Nobel Prize–winning economist Michael... Spence explains how the notion of value is changing.

Financial globalization: Retreat or reset?

– Cross-border capital flows remain 60 percent below their precrisis peak, and growth in financial assets around the world has stalled.... Continued retrenchment could jeopardize investment and recovery unless policy makers can "reset" the financial system for a healthier flow of financing that supports economic growth.

Debt and deleveraging: Uneven progress on the path to growth

– Reducing debt in mature economies continues to be a long and slow process. But lessons of history show that with the right reforms... during deleveraging, countries can return to robust long-term growth.

The emerging equity gap: Growth and stability in the new investor landscape

– Short of a very rapid change in investor behavior and adoption of new policies in the largest emerging economies, the role of... equities in the global financial system may be reduced in the coming decade.

Mapping global capital markets 2011

– The 2008 financial crisis and worldwide recession halted a three-decade expansion in global capital and banking markets. Today,... growth has resumed, fueled not only by expanding developing economies but also by a $4.4 trillion increase in sovereign debt.

Debt and deleveraging: The global credit bubble and its economic consequences (Updated analysis)

– MGI has updated its analysis of how total public and private-sector debt has evolved relative to GDP for selected economies.

Farewell to cheap capital? The implications of long-term shifts in global investment and saving

– By 2020, half of the world's saving and investment will take place in emerging markets, and there will be a substantial gap between... global investment demand and the world's likely saving.

Debt and deleveraging: The global credit bubble and its economic consequences

– The recent bursting of the great global credit bubble has left a large burden of debt weighing on many households, businesses,... and governments, as well as on the broader prospects for economic recovery in countries around the world. If history is a guide, one would expect many years of debt reduction, which would exert a significant drag on GDP growth.

An exorbitant privilege? Implications of reserve currencies for competitiveness

– Could the US prioritize domestic growth and jobs over its global responsibilities, sparking greater currency volatility that threatens... competitiveness?

Global capital markets: Entering a new era

– Mature financial markets may be headed for slower growth, while emerging markets will likely account for an increasing share of... global asset growth.