Last year, interest rates were supposed to start rising in the U.S. and U.K. and quantitative easing would deliver increased inflation in Japan. Twelve months later, economic headwinds from China are a major reason why normality seems as distant as ever.
The only question about European Central Bank President Mario Draghi's recent speech to central bankers in which he implied that avoiding a eurozone breakup will require increased fiscal deficits is how openly that reality will be admitted.
The lamentations of some economists in the advanced economies would have us believe that a shrinking population is a bad thing. In fact, the benefits of demographic stability, or even a slight decline, outweigh any adverse effects.