Writing in the Financial Times, Nouriel Roubini, professor of economics at the Stern School of Business, asks questions which chime with The Cobden Centre:
T he global economy is starting to bottom out from the worst recession and financial crisis since the Great Depression. In the fourth quarter of 2008 and first quarter of 2009 the rate at which most advanced economies were contracting was similar to the gross domestic product free-fall in the early stage of the Depression. Then, late last year, policymakers who had been behind the curve finally started to use most of the weapons in their arsenal.
That effort worked and the free-fall of economic activity eased. There are three open questions now on the outlook. When will the global recession be over? What will be the shape of the economic recovery? Are there risks of a relapse?
via FT.com / Comment / Opinion – The risk of a double-dip recession is rising.
As we have explained, injecting new money cannot create sustainable prosperity, but only an artificial boom. Our escape lies not in printing more money, but in a paradigm shift in economic thinking.
