Meltdown will leave vastly changed economy
With the economy showing early signs of stabilizing, it’s time to start wondering: What is the ‘new normal’ economy going to look like?
I have a question that I’m sure a lot of people wonder about. What is a “back-to-normal” economy? Is it to go back to fiscal irresponsibility and reckless spending? Jason P., Kandahar, Afghanistan
A lot people are wondering what the “new” normal will look like once the worst of the financial crisis and recession have passed. Even the most optimistic scenarios see only very gradual improvement in economic growth, with unemployment remaining high for the next several years. The only honest answer is that no one really knows.
Even beyond the specific forecasts for growth, it’s pretty clear that the economic collapse of the last year will bring profound changes in the global economy and financial system. We’re still in early innings, though, so much depends on how we respond from this point forward.
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