Morgan Stanley's Guide To The 'Twilight Zone' Of The Global Economy

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Huge questions remain unanswered regarding the outlook for the global economy.  What’s next for Europe’s debt crisis?  Is China headed for a hard landing?  Will the Federal Reserve unleash QE3 to stimulate the U.S. economy?Morgan Stanley’s latest Global Debates Playbook outlines the major issues and attempts to predict what will happen next for the world’s most important economies.

There remain wide disparities between the firm’s bull and bear cases for pretty much every known sector.

Yet as foggy as things seem, we are reminded that, in developing countries at least, growth continues to be rapid.

Read on to see the big bank’s take on the world.

Thanks to Morgan Stanley for giving us permission to feature these slides.

U.S. growth will remain sluggish through 2013

Europe won't see full-on QE from the ECB, and euro breakup risk will pass

Chinese leaders have limited room to stimulate its economy due to inflation

Brazil and Latin America are seeing demand for its exports outstripping supply

Japan is unlikely to hit even a one-per cent inflation target

India faces more bad weather and more stagflation

Russia will still see strong consumption and investment

Asia excluding Japan will need fiscal reforms to support growth

US stocks are still seeing a wide gap between bull and bear cases

European stocks will find any rally to be temporary

Japanese stocks will continue to experience weak earnings

For another worldwide outlook

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