King: Low Growth a Reality for Next Four-Five Years

The video discusses the challenges of policy coordination in today's global economy compared to the 1980s. It highlights the historical context of the Plaza Accord and the currency misalignments of that era. The current economic environment is characterized by weak growth and a lack of consensus on solutions. The discussion also touches on the potential for a recession and the need for a rethink of economic strategies to address productivity issues.

What was a key factor in achieving policy coordination during the 1985 Plaza Accord?

• Misaligned currencies

• Low unemployment

• High inflation rates

• Stable interest rates

What is one reason for the difficulty in achieving policy coordination today?

• Lack of global trade

• Less misaligned currencies

• High inflation rates

• Strong economic growth

What is a significant difference between the economic conditions of the mid-1980s and today?

• Presence of twin deficits

• Strong fiscal policies

• Low currency volatility

• High global growth

What might force policymakers to change their approach in the next few years?

• A recession

• Increased exports

• Higher interest rates

• Technological advancements

What is a major concern regarding the supply side of the economy?

• Stable currency values

• Strong labor markets

• High consumer demand

• Weak productivity growth