I am not sure which of these hypotheses on the simultaneity and rapidity of the economic deceleration actually applies. Regardless, the background to the deceleration in world growth boils down to the single fact that various "excesses" accumulated during the prolonged period of high growth that continued until recently. Looking back, the world economy, until recently, had been enjoying unprecedentedly favorable conditions.
High growth rates of around 5 percent continued from 2004 to 2007. On the other hand, prices, notwithstanding high growth, remained stable on the whole until the recent past, due to an expansion of production capacity resulting from the participation of emerging economies in the global market economy. Although memory fades, there were hot discussions in 2004 on the risk of deflation.