One of the things that will really characterize the world economy are the different opportunities. Sands is seeing a strong economic recovery in Asia, but relatively sluggish economic growth in Europe and North America.
Sands stressed that inflation is going to be major issue in fast-growing markets, as well as in the West. There will be an aftermath to monetary stimulus, which will translate into inflation.
He said thus far Asian policy-makers have gotten right; they are “already intervening very actively in residential property markets and the way banks interact with commercial development.” The buzz word, Sands said, is “macro-prudential regulation.” The West should learn how to use these tools, and early on.
What about the Middle East?
High oil prices are advantageous for this part of the world and Sands is positive on Dubai. Its tourism and role as a hub is doing really well and will work its way through its issues.
What will it take to turn Europe around?