The global economy can recover faster if we avoid the obvious pifalls | Nouriel Roubini

The world economy faces some serious downside risks but at least we now know where the risks are and how to work around them

For the past two years, the global economy has been growing, but it has swung between periods of rapid expansion and deceleration. During this period, two episodes, in particular, caused US and global equity prices to fall by about 10%. Is a pattern emerging, or is a fitful global recovery set to stabilise?

The first episode came in August-September 2015, when many observers feared China's economy was heading for a hard landing. The second episode, in January-February 2016, also stemmed from concerns about China. But investors were also increasingly worried about stalling US growth, collapsing oil and commodity prices, rapid interest rate hikes by the US Federal Reserve, and unconventional negative-rate monetary policies in Europe and Japan.

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