Jeff Garten, a professor of International Trade at the Yale School of Management covered the Post-Crisis Global Economy. How well did the world's governments do? Here was his "scorecard" of the five "R's":
Jeff gives world governments an "A", pumping about $20 trillion US dollars onto the world stage to stave off the worst impacts.
Jeff gives an "I" (Incomplete). Not quite an "F" as government regulations just have not been adopted to address situations like this.
Jeff gives this one an "I" also. The major inbalance is US borrowing so much from China, and China keeping its currency artificially low.
Jeff gives this a "B". Banks and other financial services have changed the way they do business and have taken some corrective actions on their own, often because strings attached to bailout funds.
Jeff gives this one a "C+", in that he is not hopeful for a quick recovery. Economists have five recovery models. A quick recovery has a "V" shape. A slower full recovery has a "U" shape. Some recoveries have premature upticks followed by a second crash, representing a "W" shape. Japan still has not recovered from their crash from last decade, like an "L" shape. Jeff feels that the United States will probably have a "reverse J" where it looks like a slow "U" shaped recovery over the next three years, but we never get back to our original prominence.
Jeff did not give the impression the worst was over. Rather, he felt there were still problems ahead, banks are still carrying a lot of bad debt and real estate industry may take a while to recover. He feels the era of a dollar-centric world that started circa 1945 is over, and that the dollar will continue to decline for several decades. Replacing this will be a combination of the Euro, Japanese Yen and Chinese Yuan.
What can we look forward to? There is a definite shift to Asia and other large emerging markets like Brazil. The "Global Commons" like food and energy are under severe stress. Global rules will go under a sort of remission. A resurgence of National governments to protect citizens is underway. Finally, there will be a return of Industrial policy.