IMF, World Bank meeting should take on these three shifts in global economy

Annual meetings this week must be devoted to sustaining the global economy

It is generally accepted in economics that financial variables tend to adjust more rapidly than real and policy variables. This seems to be the case this year with the three major transitions that are critical to the longer-term well-being of the global economy and markets.

While this process is ongoing, policy makers would be well advised to put these changes in operating regimes front and center at the spring meetings of the International Monetary Fund and the World Banks in Washington this week.

The first shift involves equity markets, which have settled into a regime of more frequent and larger