Why has the US economy slowed so much?

Article Abstract:

Economic activity in the US came to a standstill in the second quarter of 1995, following a period of considerable growth. This cannot be attributed to the fact that the Federal Reserve had doubled interest rates in the course of a year, as this only served to bring real short term rates to around their average level for the last 10 years. It could be that the economy has become more responsive to higher interest rates than in previous economic cycles, or that a number of temporary problems in the first half of 1995 have made the impact of higher interest rates more serious.

---

Global downturn is sharp, but not permanent

Article Abstract:

Financial markets have for some time been forecasting the emergence of a global recession, and this has led to bond yields falling dramatically over recent months. However, these fears do not seem to be shared by the business and political communities, which point to signs of an economic upturn. The world economy has certainly slowed down considerably since the strong rise in growth in mid-1994, but the downturn will not be as long as the financial markets seem to expect.

---

What they should have told the Chancellor

Article Abstract:

It is likely that the UK Treasury is putting considerable pressure on the chancellor to clarify the likely course of economic developments. At present, there is still considerable uncertainty about the impact of economic policy. Domestic demand remains unpredictable, although the prospects for real growth in 1996 seem reasonably good. The main area of doubt is still the amount of spare capacity which exists in the economy.

United Kingdom, Column, Economic policy

Similar abstracts:

• Abstracts: Choking on the very air we breathe. How we can clear the air. Ten ways to breathe easier
• Abstracts: Birt begins the BBC break-up. Three lock horns in battle of the TV titans
• Abstracts: The door to peace is ajar. So who will dare to walk through? Rebel ready to take Unionism by storm
• Abstracts: 'Fat cats' join the queue for treatment. Quiet eye at centre of a permanent storm. A suitable case for treatment

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.