Buiter: Global Economy Not in Recession, but Stagnating

The video discusses the global economic outlook, highlighting the risks of a recession and the widening output gap. It emphasizes the need for fiscal policy to address investment challenges. The impact of Brexit on the UK economy is also analyzed, noting the potential for a significant slowdown as negotiations progress.

What is the main reason for the widening global output gap discussed in the video?

• Improved market exchange rates

• Rising inflation rates

• Secular stagnation

• Increased global demand

Why are savers unhappy in the current global economic climate?

• Increased investment opportunities

• High inflation rates

• Lack of fiscal policy

• Rising nominal interest rates

What was one of the initial effects of Brexit on the UK economy?

• Reduction in labor supply

• Weakening of the sterling

• Decrease in market access

• Strengthening of the sterling

What is expected to happen as hard Brexit becomes more likely?

• Increase in foreign direct investment

• Strengthening of the UK economy

• Improved trade negotiations

• Significant economic slowdown

How has the Central Bank responded to the economic changes post-Brexit?

• By maintaining a neutral stance

• By tightening monetary policy

• By adopting a more expansionary stance

• By reducing interest rates to zero