Are the world’s economies at stall speed?

19th August 2011

It writes that "Fear that the US economy is like an aircraft – and has a "stall speed" at which it will suddenly lose traction and tumble – has been an important influence on both investors and the US Federal Reserve as they fret about a deluge of bad economic data."

Indeed, much US thinking on the matter has been influenced by this paper from Federal Reserve researcher Jeremy J. Nalewaik which suggests that low growth can be a sign that the economy is going to lapse into a recession.

On Citywire, Sarah Miloudi asks the experts whether the concept really exists in reality.

Leave a Reply

Your email address will not be published. Required fields are marked *