Populism isn't necessarily bad for the global economy. It might even be boosting it — at least for now.
That's one conclusion that could be drawn after a discussion Friday on the last day of the World Economic Forum, attended by policymakers including International Monetary Fund Managing Director Christine Lagarde, Bank of Japan Gov. Haruhiko Kuroda and German Finance Minister Wolfgang Schaeuble.
Shocks such as the U.K.'s decision to leave the European Union or uncertainty after Donald Trump's win may not be automatic downers for growth as newly empowered voters spend more, and promised infrastructure spending and cuts in regulation spur business confidence. With the economic cycle already turning, developed markets may even be able to escape the low-growth, low inflation trap that's gripped them since the financial crisis.
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