From recession to recovery: how soon and how strong?
” Now, the motivating background for this research project is a fairly grim one. The global economy is experiencing its deepest downturn in the post World War II era. 15 of the 21 economies that the IMF classifies as advanced are currently in recession, according to our definition. Despite some positive growth being experienced by emerging markets, global growth is still projected to decline by 1.3 percent this year. So, what we are witnessing is a rare combination of two types of events. The first is a financial crisis in advanced economies. And the second is what we’re calling a globally synchronized recession, where a significant amount of countries are in recession at the same time. So, against this background the chapter addresses three key questions. The first Are recessions and recoveries that are associated with financial crises different from a typical recession? Second Does the fact that the current episode being globally synchronized add an extra dimension of complexity? And
