Prospects for the world economy in 2014-2015 .............................. 1
Global growth continues to face headwinds ............................. 1
Inflation outlook remains benign ..................................... 8
High unemployment remains a key challenge ........................... 8
Trends in international finance and trade .................................. 10
Capital inflows to emerging economies declining ......................... 10
Currencies of developing countries under depreciation pressures ............. 12
Prices of primary commodities on a moderate downtrend .................. 14
International trade flows remain sluggish ............................... 15
Global imbalances narrowing to a benign level .......................... 16
Uncertainties and risks ................................................. 17
Uncertainties and risks associated with QE ............................. 18
Vulnerability of emerging economies to external shocks ................... 21
Remaining risks in the euro area ..................................... 25
Uncertainties and risks from lingering budget issues in the United States ...... 26
Policy challenges ...................................................... 27
Fiscal policy ..................................................... 27
Monetary policy .................................................. 28
Policy challenges in managing the risks associated with the unwinding of QE .. 29
International policy coordination ..................................... 30