Moodys's warned last week over US's credit rating that triple A might be under pressure if growth was not robust. Exit from expansionary policies and worries of what will happen with the bubble inside the bubble are the main concerns.
Tuesday 9 February 2010
Thursday 4 February 2010
SHAPE OF RECESSION
There were many discussions on which letter of the alphabet the recession would end up with:
W: Double dip, two consecutive business cycles
V: Single dip
L: Economy going down and staying there for long.
I think, there is a need for a new letter to show that economy is balancing at lower level of income (macro wise). "F" may be. We can think it in terms of Cartesian coordinates: x the horizontal axis, y the vertical axis and the top horizontal line (x1) of letter F as the level of income before recession and the below horizontal line (x2) as the level after the recession.
W: Double dip, two consecutive business cycles
V: Single dip
L: Economy going down and staying there for long.
I think, there is a need for a new letter to show that economy is balancing at lower level of income (macro wise). "F" may be. We can think it in terms of Cartesian coordinates: x the horizontal axis, y the vertical axis and the top horizontal line (x1) of letter F as the level of income before recession and the below horizontal line (x2) as the level after the recession.
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