Silvio Contessi, Francesca de Nicola
The collapse of trade during the financial crisis can be tied, for the most part, to a drop in demand. Less talked about, however, is the role of financing—or lack thereof.
Consumer spending has long been the engine of U.S. and global economic growth. But five trends in 2011 suggest that such spending can no longer be counted on. Finding a replacement is going to be difficult, at best.
Increasingly, emerging markets are becoming a source of growth in the global economy. For example, foreign direct investment both into and out of these countries has shown a phenomenal increase since 2000.
Keep up with what’s new and noteworthy at the St. Louis Fed. Sign up now to have this free monthly e-newsletter emailed to you.