There is reason to believe that the global economy will have to navigate troubled waters till 2015, since the Eurozone is now in recession and the crisis will take time to abate. Europe has made several important moves since December 2011, by injecting some essential liquidity in the system. But it is necessary to understand that the injection of liquidity buys time for reform, but is not reform. Over the next two years, there will be battles to repair the fault lines in the construction of the eurozone that got exposed by the global financial crisis of 2008. The hope is that after this period, the global economy will steady up, with the emerging economies becoming the growth poles, while industrialised nations witness slower but steady growth, says Kaushik Basu.

Read Here – The Economic Times