This article talks about how while almost every economy in the world was hit by this recession each is moving at its own pace and through its own methods to rebound. Optimists argue that post-war recessions have, historically, been followed by a "vigorous" recovery. They go on to say that this recovery will be above the normal rate. Pessimists point out that there are few signs of job growth and household-debt reduction still lies ahead. While America has been experiencing great GDP growth lately, the stimulus package will stop boosting growth by midyear and states are cutting budgets left and right. While America has been doing well, other countries around the world have been experiencing slower recovery or even none at all. This awkward global recovery is fueled by surplus economies such as China and Japan depending on domestic demand while "big borrowers" cut their budget deficits to save more. The article concludes saying that countries must grow in "different ways" if we want to see a more global recovery.
It's funny how the rest of the countries in the world really look to the US for answers. When i was in Europe last year, I constantly heard people complaining about how their governments need to abandon neoclassical approaches to recovery. They wanted their governments to follow the American example and intervene in the economy.
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