Those Gloating Dismal Scientists

Let's count our blessings (we'll get to the bad news in a moment.) Economically, the world has not sparkled so brightly in years. Since 2003, the global economy has been expanding at a heartening clip — close to 5% per year, according to the International Monetary Fund, which foresees more good years to come, at least until 2010. Globalization is acting precisely as predicted — as an engine of growth that accelerates investment by leveling borders and speeds up consumption by driving down prices. These competitive pressures also bear down on costs, and so money remains cheap while (core) inflation is...