That is the title of my column in MINT today. I call the downward revision to global growth forecasts by the International Monetary Fund good news. Spontaneous economic growth ended after about twenty five years since the end of WW II. After that, it has been mostly sporadic. But, financial leverage has propelled economic growth. That is why there have been so many attendant problems – climate change, environmental and ecological damage, workplace stress, mental health issues for individuals and for families, income and wealth inequality, etc.
Hence, a period of sub-par economic growth for the world economy would be a bitter but necessary medicine for the world economy. Yes, it won’t be easy. But, when the body has become dysfunctional and unhealthy, how can any medicine cure it without side effects and painful and long side effects, at that?
Elsewhere in the column, I wrote that India needs an adult-like conversation on its economy but that it lacks a quorum. It is true of global economy too.
Read my column here.