World economy in a rut despite flood of stimulus

Washington

CENTRAL bankers have managed to steer the world economy clear of a recession while leaving it stuck in the same rut that led to its troubles in the first place.

A torrent of monetary stimulus in recent weeks helped spark a turnaround in financial markets by assuaging investors' fears of an impending global downturn. Yet it did little to lift hopes among economists of a stronger pick-up that would put growth on a more solid footing.

"The global economy will continue to muddle along," said Charles Collyns, chief economist for the In…