Lower-Growth World May Prevent a Return to Normal, KPMG's Hunter Says

The video discusses the economic outlook for 2020, focusing on the potential for a recession based on Federal Reserve policies and global economic conditions. It highlights the impact of US monetary policy on global markets, particularly emerging economies, and examines the role of liquidity in maintaining economic stability. The discussion also addresses the challenges of operating in a low-growth world with declining working-age populations and low productivity, questioning whether the current economic conditions represent a new normal.

What factors did the Federal Reserve consider in 2020 that might reduce the likelihood of a recession?

• High unemployment rates

• Tolerance of inflation overshoot

• Decreasing global trade

• Strict monetary policies

How do tighter liquidity conditions in the US affect the global economy?

• They strengthen the US dollar

• They reverberate around the entire world

• They only affect developed countries

• They have no impact on other countries

What is a significant concern regarding the current economic conditions influenced by central banks?

• The potential for rapid economic growth

• The need to maintain high liquidity levels

• The increase in employment rates

• The decrease in global trade

What is a major factor contributing to lower potential GDP in many countries?

• Expanding global markets

• Increasing birth rates

• Declining working-age populations

• Rising productivity levels

What is the challenge in returning to previous economic norms?

• The belief that the previous normal can never be restored

• Low central bank balance sheets

• High inflation rates

• Increasing global cooperation