The world’s major economies are skating on dangerously thin ice and lack the fiscal, monetary, and emergency tools to fight the next downturn.
A roster of top crisis veterans fear an even more intractable slump than the Lehman recession when the current ageing expansion rolls over. The implications for liberal democracy are sobering.
“We have no ability to turn the economy around,” said Martin Feldstein, President of the US National Bureau of Economic Research.
“When the next recession comes, it is going to be deeper and last longer than in the past. We don’t have any strategy to deal with it,” he told The Daily Telegraph.
Professor Feldstein, a former chairman of the White House Council of Economic...