6 Importantly, these reversals proved to be enduring: As of 1950, all three variables were close to what one might have expected as of 1929. 7 Finally, let me turn to the capital stock. Hall suggests that the decline in the size of the capital stock, relative to trend, over the past few years will be challenging to reverse.
Regarding the current international context, I would like to highlight six elements: First, the deterioration of global economic prospects, which is already being reflected in the weakening of global trade. Lower economic prospects are also on the horizon for most Latin American countries as well as some key emerging economies such as China and India.