Policies both on the supply and demand side are crucial. To take full advantage of the very accommodative stance of monetary policies other policies to support demand and especially appropriate structural reforms should be implemented. The reduction in global poverty experienced in the last couple of decades is a success.
It has been facilitated by booming international trade and rapid growth, especially in some populous emerging economies. However, not everybody has benefitted. Guiding political and economic institutions in a more inclusive direction is essential to limiting adjustment costs and facilitating sectorial reallocation. Maintaining market openness to revitalise trade in goods and services may enhance economic growth.