The Global Economy picked up steam in 2004.  Most countries around the world grew faster than they did in 2003.  Higher oil prices failed to stall the global economic recovery, but future inflation and higher interest rates loom on the 2005 horizon.

The year 2003 is ending, and it's customary at this time to reflect on the events of the past 12 months.  What were the most significant economic events of 2003?  Which, if any, will be of lasting consequence?  How will these events alter the course of economic history in the months and years ahead?

Economics 101 stimulus policies in the United States and Europe are likely to persuade, if not propel, the global economy toward a more rapid economic recovery later this year and early next year.  Tax cuts, fiscal deficits, and lower interest rates are deliberately designed to induce more private sector spending.

The global economy's macroeconomic performance in 2002 was partly cloudy and partly sunny.  Slower economic growth in many countries has been accompanied by disinflation.  Some economies grew slightly faster this year than last year, but few have returned to the rapid growth rates enjoyed in 2000.  Aggregate demand is the key to 2003.

Argentina's economic collapse should remind us all of how fragile economic systems really are and how important it is to have sound economic institutions in place and effectual corrective policy on stand-by when things start to go wrong. 

This year's G8 Summit focused on global growth, Africa's development, and fighting global terrorism. 

Rich Nations have rekindled a pledge to give more aid to poor countries to redress global inequality and poverty.