Global coordination can reduce instability and maximize the benefits from fundamental changes in structure

Whether we like it or not, the world around us is in a state of constant change. But recent economic trends suggest that this change may be shifting its direction in a fundamental way.

Consider the advanced economies. During the last two decades, economic growth in these countries was led by consumption - so much so that economic activity in these economies swung from investment to consumption by a total of 10 percentage points of GDP. As a result, in 2010 the share of consumption in their GDP had reached 81.6 percent.