David Fuller's view Growing unease over fiscal austerity and what it means for growth is being reflected in exchange rate weakness for the euro and sterling. It's also being reflected in the gold price. Its sudden move to new highs, prompted in part by the eurozone's troubles, reflects its 'all-weather' hedge on the wall of worry. Fiscal consolidation accompanied by loose monetary policy, which now looks to be a given, mean that exchange rate pressure will persist.

Looking back, policy makers went to extraordinary and unprecedented lengths to stem the contractionary and deflationary forces released by the financial crisis. The collective effort stabilized the financial system and supported the global economy but not without a recession that proved to be one of the worst on record. More to the point, it left governments with huge fiscal imbalances, mounting debt to GDP ratios and the sovereign debt crisis a number are now being forced to tackle.