Sunday , 27 September 2020


Tag Archives: G 7

Crisis and Aftermath: Economic Outlook and Risks for the US

This boom will be pleasant while it lasts. It might go on for a number of years, in much the same way many people enjoyed the 1920s. Be that as it may, we have failed to heed the warnings made plain by the successive crises of the past 30 years, and this failure was made clear during 2008–09. The most worrisome part is that we are nearing the end of our fiscal and monetary ability to bail out the system. In 2008–09 we were lucky that major countries had the fiscal space available to engage in stimulus and that monetary policy could use quantitative easing effectively. In the future, there are no guarantees that the size of the available policy response will match the magnitude of the shock to the credit system. Words: 2262

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