It doesn't get any better than spending an hour with the great economist, Dr. Mohamed El-Erian, author of the new book, "The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse". Mohamed is Chief Economic Advisor at Allianz and chair of President Obama’s Global Development Council and if that doesn't keep him busy enough, he is a columnist for Bloomberg View, a contributing editor at the Financial Times and an influencer at LinkedIn.
Mohamed started our conversation by explaining the role of central banks and how that role changed dramatically during the financial crisis, as bankers relied on a “Whatever it Takes” mentality to help rescue the economy. While he was supportive of those actions, Mohamed also recognizes that there have been serious consequences that have occurred.
During our conversation, he outlined some big problems that the global economy faces, including how to sustain inclusive growth, how to address income and wealth inequality and the yawning gap between markets and economic fundamentals.
Mohamed says that we are coming to a "T-Junction": on one end, we are destined for a low growth economy, plagued by high unemployment, increasing income inequality and political extremism. On the other end, we see a resumption of growth and broad-based job creation, with decreasing income inequality and a drop in financial instability. While we all hope for the more positive outcome, Mohamed says that there is an equal probability that either scenario plays out.
For more, you can snag a copy of his new book, "The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse".
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