A Scan of Critical World Developments
Stimulating a More Sustainable Economy
Six years on from the onset of the global financial crisis, economic growth remains weak in high income nations despite the availability of very low interest rates. A new book by a group of prominent economists argues that overcoming stagnation will require governments to actively stimulate their economies on a continuing basis. While prompted by macro-economic considerations, the proposed economic stimulus also would offer an opportunity for the massive investments in enhanced efficiency, renewable energy, and other projects required to transition to a sustainable economy. The time is ripe for making this link between economic and environmental imperatives: the Global Commission on the Economy and Climate finds that making the investments to combat climate change, rather than harming the economies, would have a net economic benefit. Environmentalists and economists are finally on the same page—now, we just need a stimulus in political will.