In this white paper, Michael Hasenstab, Ph.D., senior vice-president, portfolio manager and co-director of International Bonds with Franklin Templeton Fixed Income Group, talks about three key points.
• The global economy is recovering but at different paces—with emerging economies, especially those in Asia, experiencing stronger growth, while developed economies continue to face difficulties. The U.S. economy is improving, and though it continues to face challenges, we believe it has better growth prospects compared with the Eurozone or Japan.
• They believe global financial markets in 2010 will be marked by economic delineation between over-leveraged developed economies versus emerging markets, particularly in Asia, that have stronger underlying fundamentals.
• Successful monetary and fiscal policy stimulus to stave off a global depression has created future risks of excess liquidity, inflation, higher taxes and other negative consequences. The timing of reversing stimulus will present a challenge for policymakers worldwide.
To read on, download the white paper.