Daniel Hannan MEP: The devalued Prime Minister of a devalued Government

British Member Of Parliament Daniel Hannan, 26/03/09

IMF: World economic outlook not so good

The IMF’s Olivier Blanchard writes the following:

The historical evidence is worrisome, however. The IMF’s forthcoming World Economic Outlook presents evidence from 88 banking crises over the past four decades in a wide range of countries. While there is large variation across countries, the conclusion is that, on average, output does not go back to its old trend path, but remains permanently below it. The possible good news is that the trend itself appears to be unaffected: on average, crises permanently decrease the level of output, but not its growth rate. So, if past is prologue, the world economy likely will return to its past growth rate. But, especially in advanced countries, the period of above-average growth, characteristic of normal recoveries, may be short-lived or nonexistent.

HT: Greg Mankiw

‘Keeping Tabs on the $700 Billion Bailot’

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HT: Libertarian Romantic Ideal