Why the World may not face another great recession soon...

·         The   steep  fall in oil prices should  /  will  raise the real disposable income of people. The circular flow of funds will see an induction of funds.

·         Oil price and commodity price falls will increase company profit margins. Input costs will come down, which enhances margins.

·         These augmented fund flows from corporate sector and households would service debt and increase compensatory spending in the private sector. There should be liability increases in the banking sector.

·         The larger than expected QE moves on ECB's part and proactive action by Bank of Japan lift both sentiments and financial flows .

·         Nominal interest rates close to zero in several countries.

·         The depreciation of the euro.

·         This would strengthen price competitiveness of euro-area companies  

·         Growth has returned to the largest economy of the World, USA.

·         There are  great economic moves going on in China and India.

·         China is averaging 7 % growth rate (which may be lower than expectations of double digit) but yet is one of the most enviable rates.

·         India is also looking at great growth in coming years with reforms and infrastructure coming through with at least declared intent and speed.

·         There is a great move towards urbanization in the emerging economies. This will bring about economic agglomerations in emerging countries.