This economy could be as good as it gets
By Thomas Cooley, Paganelli-Bull Professor of Economics and Peter Rupert
The important policy question to ask now is which structural reforms and investments in human capital can make our longer-term growth options better.
It is true that the depth of the recession and the current sluggish recovery are much different than anything we have seen since the Great Depression. But rather than look at the current recession in comparison with previous U.S. recessions, consider its comparison with Europe. The events in Europe that sent crippling shockwaves through much of the world might be of such a magnitude that the current speed of the recovery is fast enough. The current downturn is unusual because it was triggered by a large common shock, rather than the idiosyncratic components that usually put individual countries into a recession. We don’t have a lot of experience with such shocks, so it may be useful to look across countries to see how others have fared.
Read full article as published in Reuters.
More Opinions from Thomas Cooley
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- "Not Even Close...," 12.21.11
- "Euro’s Fall May Doom All," 12.8.11
- "What Hamilton Can Teach the Euro Zone," 12.8.11
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