While consumption has arguably played a critical role in the industrial countries’ growth momentum, exports might have played a similar role in the emerging markets. The sustenance of consumption as opposed to investment-led growth has thus given rise to new controversies on present versus future allocation of resources as also on the relevance of overlapping generation outlooks.
There continues to be a generalized uncertainty related to valuation losses of securitized products $ billion), the use of credit ratings, possible spillover effects to other financial institutions (including monoliners) and the overall impact of the turmoil on global economic growth. The recent developments in the US and in foreign financial markets are stimulating considerable review and analysis.