According to Triple Crisis contributor Yilmaz Akyüz, the U.S. Federal Reserve and, by extension, the entire global economy are in uncharted waters, as the Fed begins to back off the expansionary monetary policy it has followed since 2008. Dr. Akyüz’s comments in conversation with Real News Network producer Lynn Fries, were delivered after a UN workshop in Geneva. He argued that the United States’ zero interest rate policies, and China’s high-investment policies, which have buoyed up world demand, are both “unsustainable.” Meanwhile, income inequality and the declining labor share of total income has put the world economy in a serious “underconsumption” bind. “And income distribution,” he notes, “has gotten much worse during the crisis … and therefore we have [an even bigger] consumption gap.” – Eds.
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