world economy

World Sharemarkets Are Sneezing. What Does That Tell Us About the World Economy?

Before discussing the state of the world economy – especially what is going on in China – it is useful to say something about the importance of the sharemarket (Americans call it ‘stock market’). It is far more important in pop-economics than serious economics.

The more one is certain about the state of an economy, the more one is likely to be wrong; the more one is certain about the state of an economy, the greater the media coverage. No wonder the public is confused.

I shan’t add to the confusion. In quick summary, the New Zealand’s economic growth seems to be slowing down but we don’t know whether it will go negative and economic activity contract.

* The Australian economy  is in the doldrums.

The IMF's latest assessment of the world's economy contains a surprising policy suggestion. Should we be concerned (again), or is it just another part of the great plan?

If you really thought it was now safe to venture back into the markets now, then it is probably best that you don't read on.

Wrapping up this year and looking ahead a bit to the next

The year's winding right down now, and thanks the stars 2011 is over. Happy to see it go by. Eleanor and I are off for a few days at the beach before our second child is due.

The other pundits are all able to post if they can muster the energy – thanks for your work today Mike! But I imagine it'll be meagre bloggy rations here at Pundit for the next week or so.

G7 leaders pledge to support financial markets in wake of US debt downgrade; the European Central Bank buys up Spanish and Italian debt; US dollar continues to weaken against other major currencies; China calls for "international supervision" of US dollar and says the country must live within its means; Syrian forces attack Eastern city of Deir al-Zour; efforts to recover US Army helicopter shot down in Afghanistan, killing 38, hampered; and more

Top of the Agenda: World Leaders Respond to U.S. Downgrade