In other words, developed economies won the war in the crisis period, lost the peace in the post-crisis period. This evolving post-crisis scenario has been described as New Normal. 3.
Mr. Mohamad El-Erain, the Chief of Pacific Investment Management Company (PIMCO) coined the phase New Normal during early 2009 fundamentally to signify a downward shift in potential growth of advanced economies because of the impairment of their financial sectors and capital destruction.