Many forecasters rightly pointed out at the beginning of the financial crisis that the recovery would be very slow by historical standards as it would take years to work off the huge debt accumulated during the bubble.
Another future headwind for the world economy one that will outlast the hangover from the credit crunch is that populations are ageing.
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The middle-aged save more, so as the ratio goes up, the economy's ability to withstand deflationary shocks dwindles; more and more people will be saving rather than spending.
Moreover, young people's spending normally spurs investment, soaking up the savings of the middle-aged. But as the young group shrinks, its spending potential becomes too small to encourage much investment.
So, savings chase a limited set of investment opportunities, implying more asset bubbles in future. Markets "are in for a rocky ride over the next two decades".
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Rachel Reeves confirms ‘workaround’ for pensioners facing tax bill on state pensionAs the full new state pension looks set to breach the tax-free personal allowance within years, the government has said anyone on just a state pension won’t have to pay income tax on the payment until the end of this parliament
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Zoopla: House prices in southern England drop for first time in 18 monthsHouse buyers could benefit from a fall in prices, triggered by a rumoured ‘property tax’ prior to the Budget, as Zoopla revealed lower prices for the first time in 18 months
