The big three economic dilemmas for 2012

ECONOMICS

Stuart Thomson, chief economist at Ignis, outlines the global economy's three dilemmas for 2012 including monetary easing versus inflation, the impact of the US elections, and, of course, Europe.

"The good news is the global economy will avoid recession during 2012. It will avoid a double dip recession by a whisker, growing by just 2.25%, significantly below its productive potential of 3%, meaning the world economy will experience a growth-recession. "Major industrial economies of the world have already been experiencing a growth recession and history tells us they can expect several years of volatile and sub-trend growth as they reduce their excessive leverage. "As a result, we believe the major developing economies will experience contagion and will experience their own grow...