From: Dave Zachariah (davez@KTH.SE)
Date: Tue Jan 22 2008 - 16:23:16 EST
on 2008-01-22 15:47 Jerry Levy wrote:
> Do you expect the that the US economy and world capitalist economy
> will experience deflation or stagflation in the immediate period ahead?
>
The Levy Economics Institute has released another analysis by Godley et al.:
The U.S. Economy: Is There a Way Out of the Woods?
This Strategic Analysis provides a retrospective view of U.S. growth
in the last 10 years, showing that the authors’ previous work,
grounded in the linkages between growth and the financial balances
of the private, public, and foreign sectors of the economy, has
proven a useful contribution to the public discussion. The analysis
reviews recent events in the U.S. housing and financial markets to
obtain a likely scenario for the evolution of household spending. It
argues that a significant drop in borrowing is likely to take place
in the coming quarters, with severe consequences for growth and
unemployment, unless (1) the U.S. dollar is allowed to continue its
fall and thus complete the recovery in the U.S. external imbalance,
and (2) fiscal policy shifts its course—as it did in the 2001 recession.
See: http://www.levy.org/vdoc.aspx?docid=964
This archive was generated by hypermail 2.1.5 : Thu Jan 31 2008 - 00:00:06 EST