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The long climbSource: www.economist.comst Oct, 2009 (Adapted 9204

The long climbSource: www.economist.comst Oct, 2009 (Adapted)   

        The world economy is fitfully getting back to normal, but it

will be a "new normal". This phrase has caught on, even if people

disagree about what it means. In the new normal, as defined by Pimco´s

CEO, Mohamed El-Erian, growth will be subdued and unemployment will

remain high. "The banking system will be a shadow of its former self,"

and the securitization markets, which buy and sell marketable bundles of

debt, will presumably be a shadow of a shadow. Finance will be costlier

and investment weak, so the stock of physical capital, on which

prosperity depends, will erode.            The crisis invited a

forceful government entry into several of capitalism's inner sanctums,

such as banking, American carmaking and the commercial-paper market. Mr

El-Erian worries that the state may overstay its welcome. In addition,

national exchequers may start to feel some measure of the fiscal strain

now hobbling California. America's Treasury, in particular, must

demonstrate that it is still a "responsible shepherd of other countries'

savings."In paragraph 2, the author mentions "the fiscal strain now hobbling California". In other words, the fiscal

Questão no QuestionsOf: The long climbSource: www.economist.comst Oct, 2009 (Adapted 9204

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