SINGAPORE (July 28): The years 2002 to 2016 saw unusual shocks and stresses. In the early 2000s, liquidity growth was excessive as the US central bank responded to the bursting of the tech bubble by aggressively cutting interest rates — and then taking its time to raise them again.

That period also saw China’s economy soar, partly as a result of high credit growth. All this caused global growth to accelerate, but the acceleration was accompanied by financial imbalances that finally ended in the mother of all crises in 2007.

Simply by virtue of the immense damage that the global financial crisis caused, it took a long time for the world economy to recover. Worse still, that recovery itself was delayed and distorted by multiple events: The eurozone had several rounds of sovereign debt crises, and the collapse in oil and commodity prices that followed added to the difficulties.

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