Brought about by loose monetary policy, recent structural changes have been taking place on a global scale. However should this policy continued across all major economic blocks for such a long period of time? Greenspan believes that structural change is achievable; identifying that sustained growth can be attained without inflationary pressures. During the same period, fiscal policy has become more disciplined and provided a framework for lower levels of interest rates. Overall the recent global economic environment has created an increase in global liquidity. However, the increase in energy prices may mean that we are nearing the end of this low inflation era and the consequences of these events could be US imbalances, anexus between US housing and consumer spending and return of inflationary forces.

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