Goodbye to one year and welcome to another

WAS 2017 a good year for the world? And, how will 2017 affect 2018, the year that follows? Many who will write about the eventful 2017 will ask both questions and discuss what kind of mark it will leave on history. Economists are latecomers to the idea that their discipline alone will not explain the changes occurring in the world. They need to lean on other social sciences to understand change. It was only when psychoanalysts invaded their field and laid the basis of behavioural economists that we developed a better understanding of economic affairs.

Looked at from the perspective of economics, 2017 turned out to be a better year than most analysts had predicted. The world economy continued to grow, albeit tepidly. Economic upturns following deep slowdowns usually bring high rates of growth. This did not happen in the recovery that began in 2009-10. Also, economic cycles last for six to eight years and then economies get exhausted and swoon. That is not happening this time around. The current…