IS BROAD RECOVERY IS WITHIN REACH ?

With all major central banks pursuing expansionary monetary policies, oil prices falling sharply, and the ongoing revolution in information technology spurring investment opportunities, the prospects for economic growth in 2015 and beyond are better than they look to the pessimists.

• There are rising profits,
• Reasonable investment prospects for businesses,
• A large backlog on infrastructure spending almost everywhere in Europe and the US,
• Opportunity to finance capital-goods exports to low-income regions, such as Sub-Saharan Africa,
• Meeting the worldwide need for investment in a new, low-carbon energy system.

If there is a shortfall of private investment, the problem is not really a lack of good projects; it is the lack of policy clarity and complementary long-term public investment. In 2015, wise diplomacy and wise monetary policy can create a path to prosperity. Broad recovery is within reach if we manage both ingredients well.