Conclusion

Question 1

6 problems for the future

Answer 1

1. When’s the next 2008
2. Inequity
3. Europe
4. Environment
5. Role of government
6. Modern technology

Question 2

The next 2008 (3)

Answer 2

Lack of/rollback of regulation
Financial demand driven from higher risk emerging markets
Weak fiscal/monetary leverage

Question 3

Inequity (4)

Answer 3

Hard growth strategy leads to greater inequity and imbalanced economy more likely to overheat
Inequality creates terrorism
Relocation of low skilled labour increases internal inequality
Increased populist politics

Question 4

Europe (5)

Answer 4

S.Europe trapped in currency trap
Unequal competition in one market
Migrant crisis
Italian bank crisis
Bailing countries

Question 5

Enivronment (3)

Answer 5

Rejection of multi-lateral agreement by public
Climate destabilisation
Prices have failed to fully encompass costs

Question 6

Role of government (3)

Answer 6

Dominant ideology values market>government
Externalities only addressable by gov include major future problems
Reduced cross border cooperation/need for global institutions

Question 7

Modern technology (2)

Answer 7

Innovations must produce net benefit
Capital production at near 0 MC means less demand for public savings for investment leading to over saving potential secular stagnation