Most emerging economies may be returning to growth, but they are performing well below their potential
A sharp contraction in labour income has many negative effects on the economy and financial markets
A negative oil shock, together with rising govt-bond yields, could clip the recovery's wings
Economic recovery everywhere will be weaker and will take longer than expected.
Govt receivership of insolvent western banks is the best option
Undertake aggressive monetary and fiscal measures so that the inevitable stag-deflation of 2009 does not persist.