Banks began to slow their new lending, and defaults on mortgages began to rise.

Japan s slow growth and low interest rates over the past two decades are emblematic.

The outlook for 2005 is for a slowdown in economic growth as commodity prices decline but for a slight increase in inflation.

Likewise, many emerging market central banks reacted to slower growth and lower inflation by cutting policy rates as well.

The growth slowdown is a much greater concern than the recent asset price volatility, even if the latter grabs more headlines.

Economic efficiency, investment, and employment would take a significant hit, while slower growth would be accompanied by higher prices, including for basic food items.

Long Live China s Slowdown

Moreover, two thirds of the decline is attributable to slower investment rather than slower consumption.

Soaring food prices before the global financial crisis provided a warning, as does the slowing rate of growth of agricultural productivity.

These structural changes have put most Latin American economies on a sound footing, reducing their vulnerability to external shocks, such as deceleration in world economic growth, higher international interest rates, and lower commodity prices.

So, even as growth slowed, the central bank raised interest rates in order to rebalance demand and the available supply, causing the economy to slow further.

This happened in 1980 1981, when the US Federal Reserve raised real interest rates, ostensibly to kill inflation, inducing a global economic downturn as well.

With deflating housing bubbles, high oil prices, and a strong euro already impeding growth, the ECB is virtually ensuring a sharp euro zone slowdown.

SINGAPORE Luxury brand companies stock prices plunged in July, after their financial results disappointed investors, owing largely to slower sales in emerging markets, especially in China.

Indeed, its sluggishness has confounded even the experts.

But a slowdown in China s economic growth cannot really be blamed for slower sales of luxury goods or empty malls.

In fact, this summer s asset price correction reinforced a view many of us already had that the US economy was slowing, led by sagging productivity and a deteriorating housing market.

Slower growth means less revenue, and a faster downward spiral.

The Slow Movement advocates a cultural shift toward slowing down life's pace.

Deceleration in India and China would lead to further cuts in prices for raw materials, weakening markets whose strength has underpinned Brazil s powerful trade performance in recent years.

Sometimes it is a good deal of the relationship comes from countries where interest rates are higher and the stock market is lower, and where a higher debt GDP ratio does indeed mean slower growth.

The recent rise in oil prices also posed a challenge to world economic growth and, in particular, the economic development of many developing countries. Other possible constraints on growth included a lull or even reversal of the trend in appreciating housing prices in many large economies and a significant rise in long term interest rates and risk adverse financial markets.

As European growth slows, so will inflationary pressures.

The financial crisis may slow this trend.

The most immediate threat is the slowdown in the advanced economies.

But, with the economy slowing, it has become a model in need of renewal.

The second reason for India s slowdown stems from the global financial crisis.

The ECB should act with greater alacrity not because there are increased prospects for future growth, but for the opposite reason the fear that European growth will slow, thus limiting the possibility for future rate hikes.

A growth slowdown is hardly shocking for an export led economy.

But the price for protecting workers and firms was slower growth and higher unemployment.

Even the pessimists are speaking only of lower positive growth.

What motivates or frightens the growth pessimists, in particular, are (1) higher European interest rates, (2) the slowing US economy, and (3) the increase in the German value added tax (VAT) from 16 to 19 set for the beginning of the year.

Politically, the path is clear for the ECB to act.

As its economy slows, the improvement in its fiscal position may be minimal.

Second, the factors slowing US growth are chronic.

BEIJING The slowdown of China s economy has captured the headlines in recent weeks.

An economic slowdown in the US and Europe could substantially slow this infusion of cash, because immigrants are often the first to lose their jobs when recession fears take hold.

As European growth slows, so will inflationary pressures. So Trichet should relax, stop threatening others, and let the economic slowdown do the work for him.

Indeed, while settlement building in the West Bank has slackened, it continues.

Not all regions will necessarily have slower economic expansion in the decade ahead.

Here the river slows considerably, dropping sediment that might otherwise form a river delta.

Recent reports of declining consumer confidence reinforce the likelihood that spending will slow in the months ahead.

Thus, the US slowdown affects European exports in two ways.

Do Low Interest Rates Ensure High Asset Prices?

Even robust China and India are experiencing slower growth, curtailed ambitions, and broken dreams.