With all the fast-moving developments in the global economic and financial situation, how has PIMCO’s overall view changed since the previous Forum?
Balls: The broad contours of the outlook are the same as we described in December but the European and global outlook has worsened significantly. This has increased the pressure on policy responses around the world, particularly in the U.S. owing to the difficult combination of finance, economics and politics and the size and complexity of the required interventions. There have been some significant changes in global policy responses: quantitative easing in the U.K., and also some of the signals from the European Central Bank (ECB) indicate greater efforts toward easing credit conditions and public debate among ECB policymakers on the need for stronger interventions. What has not changed is the difficulty in designing policy responses at national levels that provide comfort and encouragement to the markets. And what else has not changed is the difficulty with creating a coordinated global policy response, or even within the European Union (EU) a coordinated European response, particula
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