“Sept. 18 (Bloomberg) — The world economy is sliding into a “twilight zone,” trapped between outright expansion and renewed recession.
“It could go either way,” said Joachim Fels, chief economist at Morgan Stanley in London, who coined the description in an Aug. 15 report. “It doesn’t take much to tip us into a global recession.”
The quandary is forcing central banks back to the fore, with the Federal Reserve last week embarking upon a third round of quantitative easing and the European Central Bank standing ready to buy bonds. While the moves were enough to propel the Standard & Poor’s 500 Index to its highest since 2007, the test is whether they can lift the global economy from its so-called stall speed.”
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