Try as they may, more than seven years after the Global Financial Crisis, central bankers have not been able to resurrect previous levels of global growth and investment. Yellen, Kuroda, Draghi, and others have taken a multitude of unconventional measures to reignite aggregate demand, only to be held back by excessive debt burdens, fiscal headwinds, and market dynamics that continue to pose depressive threats.

Many influential voices have long touted that unconventional monetary stimuli experiences severely diminishing returns when not accompanied by fiscal stimulus and reformation. However, political gridlock in many developed economies has stalled any and all efforts to fight the lack of global demand from all fronts.

Many now believe that the famed “helicopter money” in the form of fiscal infrastructure investment is the solution to kick-start the global growth engine. …

The trillion-dollar renewable energy investment deficit no one is talking about

According to the World Economic Forum’s most recent Global Risks report, failure of climate-change mitigation and adaptation is perceived as the number one most impactful risk and the third most likely global risk for years to come. The interconnectedness of environmental issues such as the water-energy-food nexus have been at the forefront of the report in recent years as climate change related risks “have moved from hypothetical to unequivocally certain because insufficient action has been undertaken to address them.” The report goes on to highlight several risk clusters as identified in their Interconnections Map and lists the cluster linking the failure of climate change mitigation and adaptation with water crises, food security concerns, and large-scale involuntary migration as one of the most pressing issues and that the “intertwined challenges are unfolding against a background of many socio-economic pressures.” …

Marc Johnson

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