The economic shock that didn't happen

Washington

"A BIG adverse surprise - like the election of Donald Trump in the US - would likely cause the stock market to crash and plunge the world into recession," predicted Simon Johnson, the renowned MIT economist and a senior fellow at the Peterson Institute for International Economics a few days before the US presidential election.

"Investors in the stock market currently regard a Trump presidency as a relatively low-probability development," noted Dr Johnson, who is also the founder of the …