These policies risk asset bubbles in emerging economies, more acute inflationary pressures globally and subpar global growth. Listless advanced economies The contrast between the emerging world and the advanced economies could not be starker. The major advanced economies, particularly the United States, were Canada’s future once. However, in the years ahead, they will be weighed down by the legacy of the crisis.
Repairing the balance sheets of banks, households and countries will take some time (Charts 3 and 4). None of this is surprising. History suggests that recessions involving financial crises tend to be deeper and have recoveries that take twice as long.