In a panel discussion on the Dutch radio station BNR Nieuwsradio on 31 December 2018, Bas Jacobs, Sijbren Cnossen Professor of Public Economics at Erasmus School of Economics, looks back at a turbulent year with agitation of the stock markets, the alarming rise of populist movements, a crumbling world order, failed climate plans and much more. Other panel members are Prof. Roelof Salomons (University of Groningen) and financial journalist Martin Visser (daily newspaper de Telegraaf).
The unemployment rate is historically low - 3.5 percent - and because of the boom in the housing market our mortgage debt is not increasing as a percentage of our income. However, this is not a reason for me to be optimistic, says Professor Bas Jacobs. Despite the expansionary monetary policy - the ECB has bought bonds until the end of this month, the interest rate is still zero percent -, despite the fact that we still experience catching-up growth from the Great Recession and governments are still conducting expansionary fiscal policy, the economy only grew with 2.5 percent this year. That is very mediocre. When macro-economic conditions become less supportive, it will be problematic. When the economy comes in a downturn again, there is nothing we can do about it. And the global economy is now heading towards such a downturn.
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Listen to the entire podcast on BNR Nieuwsradio, d.d. 31 December 2018