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The difficult economic climate in Europe and the US is set to continue for many years, despite desperate efforts to stimulate growth. The long phase of expansion in western economies that lasted from the 1980s until 2008 was driven by easy money, cheap imports and confidence - all gone. And the shift of geopolitical power to Asia is permanent. Western economies face huge political obstacles to reforms that would boost productivity and growth - continuing stagnation is far more likely. Businesses and policymakers need to adjust to the new reality. And the quicker they do so, the more likely it is that economic prospects will eventually improve.