Posted on August 3rd, 2011
♦ The pace of global economic growth started to slow down at the beginning of the year and is now close to zero.
♦ The main cause of this slowdown in growth is an almost universal tightening of economic policy. In the developing world, interest rates were raised to stop inflation. In the developed world, government spending was cut in order to reduce the debt. Thus, irrespective of its motives, tightening of monetary or fiscal policy has caused a slowdown around the world.