Finally, I think that the word ’normalization’ as a description of the monetary policy outlook in the advanced economies is actually misleading, as it suggests a return to some pre-crisis ‘old normal’. I would prefer to talk about a journey towards a new equilibrium, which should be more sustainable, resilient and inclusive than the old one.
On that journey, a key worry at the global level is the now apparent dependence of growth on the accumulation of even more debt. This makes all parts of the global economy increasingly vulnerable to any future shock.