The emperor's new clothes

I'm sure that you all know the story of the emperor who was told by a group of con artists that they would dress him in a suit that was invisible to stupid people. The trick took a long time to be revealed because the emperor, like many of his subjects, was reluctant to admit his own shortcomings despite the evidence.

Key points

• Key points:
• Financial markets can resemble the emperor in the fable walking around naked, with absolute confidence in the power of central banks to manage the global economy.
• Global GDP growth stands slightly above 3% in mid-2019, close to the 3.5% average seen over the last 40 years, but lower than just a few quarters ago — due the slowdown in the manufacturing industry and international trade.

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