Blog
Cathartic recession?
26th January 2008
Cathartic
- causing bowel evacuation, usually of liquid feces; an agent that so acts.
- producing catharsis.
Evan Davis in his excellent blog ‘Evanomics’ was prompted to ask Larry Summers this morning on the BBC radio 4 Today programme whether there was such a thing as a cathartic recession - a downturn that helped to rid an economy of financial excess; raise private sector savings and bring about a correction of macroeconomic imbalances such as an enormous trade deficit.
Evan’s blog post can be read here
David Warsh writes here about the US economy and considers whether there has never been a better time for a recession
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.