Pimco’s New Normal 2.0: Long Climb to Economic Recovery

The video discusses the economic recovery post-recession, highlighting the long climb back to pre-recession GDP levels. It addresses economic scarring, labor market challenges, and the need for fiscal stimulus to prevent prolonged unemployment. The concept of the 'new normal' is explored, with a focus on global GDP and potential optimism from the Pacific Rim. The discussion extends to post-COVID recovery, market volatility, and the interplay between fiscal policy and inflation risks.

What does the term 'new normal' refer to in the context of the economic discussion?

What are the risks associated with fiscal policy and inflation as discussed in the text?