As 2015 begins, the global economy remains weak. With few signs that this year will bring any improvement, policymakers would be wise to understand the factors underlying the global economy?s anemic performance and the implications of continued feebleness.

With the worlds industrial democracies in crisis, two competing narratives of its sources and appropriate remedies are emerging. For better or worse, the narrative that persuades these countries governments and publics will determine their future and that of the global economy.

With luck, Italy may soon get a credible government of national unity, Spain will obtain a new government in November with a mandate for change, and Greece will do enough to avoid roiling the markets. But none of this can be relied upon. So, what needs to be done? First, eurozone banks have to be recapitalized. Second, enough funding must be available to meet Italys and Spains needs over the next year or so if their market access dries up. And, third, Greece, now the sickest man of Europe, must be treated in a way that does not spread the infection to the other countries.

The big necessary decisions on curbing entitlement growth and reforming the tax code will probably have to wait until after the next election, giving the divided electorate an opportunity to reflect on its own inconsistency and send a clearer message. In the meantime, US politicians might have done just about enough to convince debt markets that Americas credit is still good. For that, Americans and others around the world should stop pillorying them and give them their due credit.