Present Global Economic Scenario and Role of United States
US will expectedly lead revival for the developed world and India for the developing world with oil prices on a downward spiral followed by other commodity prices.
The economies are no longer exclusive but are greatly intertwined with each other. The workers are becoming global players so inflation is no longer a domestic policy concern.
Present Scenario
The world economy is largely guided by the oil prices which are on a downward spiral in the last few months. It is expected that other commodity prices will follow suit. Inflation is on a better footing too as it has stabilised below 2 percent for the developed world and less than 4 percent for the emerging economies.
2008 crisis was a tipping point in the world economics. The recovery phase post 2010 saw many economies under pressure. It was US which showed signs of revival faster than its counterparts. Also, the discovery of Shale gas reserves has eased the energy burden of US. Shale gas revamped the slowing US economy much more swiftly than expected. In the developing world, India was saved from the drastic aftershocks due to robust policy framework. The steep fall in oil prices have proved highly favourable for Indian economy as it helped it to stem its CAD and inflation.
