But the global economy is slowing down, and financial markets went into a tailspin during the summer.

And now the darlings of the world economy, emerging markets, have proved unable to reverse their own slowdowns.

Many European economies are already slowing, with some entering recession.

CAMBRIDGE The global economy is a runaway train that is slowing, but not quickly enough.

Three decades of success in China, and a decade in which India supposedly overcame the old, slow, Hindu rate of growth, are ending with both economies slowing precipitously.

Investments in energy efficiency and low carbon technologies could also pull the global economy out of its economic slowdown over the next couple of years.

With this engine of growth turned off, it is hard to see how the American economy will not suffer from a slowdown.

In an economic slowdown, the country s severe crime problem might only worsen so might unemployment, which already tops 20 in the formal economy.

Containing China s Slowdown

Indeed, the US has overtaken China as Japan s main export market, as America s economy, too, recovers from half a decade of sluggishness.

While emerging economies can deal with the economic slowdown in industrial countries, the financial sector transmission mechanism is more challenging.

A further slowdown in China is a distinct possibility. China s leaders must do what it takes to ensure that such a slowdown is not viewed as secular trend a perception that could undermine the consumption and investment that the economy so badly needs.

With global financial markets in crisis and Europe s economy softening, the challenges for the new Italian government will only become greater.

The poor and even the middle classes are seeing their incomes squeezed as the global economy enters a slowdown.

In Europe and Japan, for example, monetary and fiscal policies have been tightening in response to domestic concerns, further slowing the world economy.

The economy contracted in 2001 and 2002 due to slowdowns in tourism, consumer spending and the impact of the 11 September 2001 attacks, but rebounded in 2003 and has shown growth since 2004.

And, in our globally integrated world, the slowdown in Europe will exacerbate the slowdown in the US, and vice versa.

Moreover, from a higher rate level, the ECB would be in a better position to cut rates now that the economy is slowing.

Over the past decade, economics has pulled the US and India closer. It will continue to power the relationship in the future, even as both countries experience a slowdown during the current economic crisis.

This means allowing the economy to continue to slow, while maintaining relatively tight macroeconomic policies that force local governments and the business sector to find new sources of growth.

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.

NEW HAVEN China s economy is slowing.

Given the high degree of trade and financial globalization that now characterizes the world economy, there is no doubt that the slowdown in the advanced economies, which account for two thirds of global GDP, will undermine emerging country growth.

Banks with substantial overhanging debt reduced lending, and, despite the massive intervention of governments and central banks, the crisis dragged down the global economy.

Within China, the current slowdown is mostly homemade.

SHANGHAI Everyone is talking about China s economic slowdown.

On the demand side, the ongoing economic slowdown in China is starting to affect companies orders and revenues, adding to the challenges stemming from the persistently sluggish US economy.

With Sarkozy off his back, ECB President Jean Claude Trichet might feel freer to cut interest rates to counter the impending economic slowdown in Europe.

In part, India s slowdown paradoxically reflects the substantial fiscal and monetary stimulus that its policymakers, like those in all major emerging markets, injected into its economy in the aftermath of the 2008 financial crisis.

Population growth has been slowing since the late 1960 s.

The slowdown would be one tenth the size of the one the US is now enduring, and it would be largely confined to the construction sector.

But it is not just the slowdown that has the skeptics worked up.

Indeed, I (and others) have argued that growing inequality is one of the reasons for the economic slowdown, and is partly a consequence of the global economy s deep, ongoing structural changes.

BERKELEY The latest data on employment in the United States confirm that the American economy continues to recover from the Great Recession of 2008 2009, despite the slowdown engulfing the other G 20 nations.

Many other central banks are nervously watching the situation, well aware that they may soon find themselves in the same position as the global economy continues to soften and default rates on all manner of debt continue to rise.

The problem is that the permits market price has plummeted in the midst of Europe s economic slowdown.

An economic slowdown will exacerbate all our financial problems.

In China, the economic slowdown underway is unmistakable.

The impending global slowdown has intensified protectionist pressures.

The financial crisis is over, but the age of general economic slowdown is only just beginning.

That would be a good thing. With Sarkozy off his back, ECB President Jean Claude Trichet might feel freer to cut interest rates to counter the impending economic slowdown in Europe.

For example, to make his threats of an interest rate hike in the midst of a global slowdown credible, the ECB president is using his press conferences to tell the world how strong European growth is.

It is subject to what Milton Friedman called long and variable lags.

A lower debt burden would certainly help Japan deal with its economic slowdown.

The former would exacerbate the country s slowdown, and neither change is in the cards.