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Saturday, 27th December 2008

Prospects for the U.S. and the World: A Crisis That Conventional Remedies Cannot Resolve

Prospects for the U.S. and the World: A Crisis That Conventional Remedies Cannot Resolve
Source: Levy Economics Institute of Bard College

The economic recovery plans currently under consideration by the United States and many other countries seem to be concentrated on the possibility of using expansionary fiscal and monetary policies alone. In a new Strategic Analysis, the Levy Institute’s Macro-Modeling Team argues that, however well coordinated, this approach will not be sufficient; what’s required, they say, is a worldwide recovery of output, combined with sustainable balances in international trade.

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