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How will the world cope with tighter monetary policy?

We expect global growth to slow only modestly as the era of easy money starts drawing to a close. The monetary tightening is set to be gradual, limited and staggered, with some countries only starting to tighten as others are finishing. And the relationship between interest rates and GDP growth has generally been weak. But with debt still high, the world economy would struggle with a much bigger tightening.

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