Time to rethink the recipe for a global recovery

The world economy is bracing for its worst year since the global recession of 2009. The International Monetary Fund on Tuesday cut its predictions for global economic growth to 3.1 percent in 2015 and 3.6 percent in 2016, while the real global GDP grew by 3.4 percent last year. Worse, the IMF said that downside risks are high and these numbers could yet be lowered still further.

Isn't that a loud enough warning that we need to rethink what might have gone wrong with the experiment of using cheap money to fuel a lasting global recovery?

Given that the aggregate global GDP stood at $77 trillion last year, each 0.1 percent less growth could mean the evaporation of tens of billions of dollars in incomes or revenues around the world.