Expert Zone
Straight from the Specialists
If the U.S. and EU slide into recession
(The views expressed in this column are the author’s own and do not represent those of Reuters)
There are apprehensions that the U.S. and EU could drift into recession again. The economic crisis of 2008 unnerved every country, with growth either turning negative or falling drastically. The recovery from that recession was weak and any relapse could be prolonged.
Following the crisis, the Federal Reserve and the U.S. government infused liquidity and banks and companies were flushed with cash, with interest rates close to zero. In debt-ridden Europe, sovereign default was postponed with compulsory adoption of austerity measures.
But the U.S. and EU have maintained an uneasy growth for the past last three years with low investment, low consumption and high unemployment. And they are once again gravitating towards recession.
