For economists, sluggish growth in the United States and around the globe following the Great Recession seemed a bit confusing. After all, the prevailing wisdom was that rapid growth and labor gains in the recovery would subsequently offset GDP contractions and high unemployment. The reality, however, was quite different. IMF professionals Valerie Cerra and Sweta C. Saxena posit that the output gaps seen in this recovery were quite normal and that the business cycle is not all that cyclical. getAbstract recommends this robust but technical report to economists and analysts.
In this summary, you will learn
- How the Great Recession affected world economies,
- Why all recessions permanently weaken GDP output and
- How officials can address these economic contagions.
About the Authors
Valerie Cerra and Sweta C. Saxena are International Monetary Fund professionals.