World Economic Outlook: Coping with High Debt and Sluggish Growth
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Assesses the prospects for the global recovery in light of such risks as the ongoing euro area crisis and the "fiscal cliff” facing US policymakers. Chapter 3 explores 100 years of history of dealing with public debt overhangs. In emerging market and developing economies, activity has been slowed by policy tightening in response to capacity constraints, weaker demand from advanced economies, and country-specific factors, but policy improvements have raised these economies' resilience to shocks, an issue explored in Chapter 4.

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Assesses the prospects for the global recovery in light of such risks as the ongoing euro area crisis and the "fiscal cliff” facing US policymakers. Chapter 3 explores 100 years of history of dealing with public debt overhangs. In emerging market and developing economies, activity has been slowed by policy tightening in response to capacity constraints, weaker demand from advanced economies, and country-specific factors, but policy improvements have raised these economies' resilience to shocks, an issue explored in Chapter 4.