Global stagnation: Difference between revisions
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(a) the completion of the stockbuilding phase of the [[inventory cycle]] that normally follows a [[recession (economics)|recession]];<br> | (a) the completion of the stockbuilding phase of the [[inventory cycle]] that normally follows a [[recession (economics)|recession]];<br> | ||
(b) the [[Shock (economics)|economic shock]] caused by the [[tsunami|Japanese tsunami]] of March 2011;<br> | (b) the [[Shock (economics)|economic shock]] caused by the [[tsunami|Japanese tsunami]] of March 2011;<br> | ||
(c) continuing [[deleveraging]] by banks and the | (c) the loss of output due to the continuing [[deleveraging]] by banks and the consequent restriction of credit to companies;<br> | ||
(d) the effect on demand of continuing deleveraging by companies and households;<br> | (d) the effect on demand of continuing deleveraging by companies and households;<br> | ||
(e) the effect on demand of the reductions in [[public expenditure]] and the other [[fiscal adjustment]]s in the [[Great Recession#Fiscal aftermath (2010-11 )|fiscal aftermath]] of the [[Great Recession]];<br> | (e) the effect on demand of the reductions in [[public expenditure]] and the other [[fiscal adjustment]]s in the [[Great Recession#Fiscal aftermath (2010-11 )|fiscal aftermath]] of the [[Great Recession]];<br> | ||
(f) | (f) the [[eurozone crisis]] and the fear of a European banking crisis resulting from the expected [[restructuring]] of the Greek government's debt;<br> | ||
(g) the fear of a global financial crisis resulting from [[contagion (finance)|contagion]] from the Greek crisis leading to a [[sovereign default]] by one of the larger [[PIIGS]] countries.<br> | |||
{{reflist}} | {{reflist}} | ||
Revision as of 07:37, 12 October 2011
Global stagnation is generally considered in late 2011 to be a possible short-term prospect, involving a large part of the world economy. Of 30 countries surveyed by the International Monetary Fund, the growth rates of the economies of 20 were classified as "below trend and moderating", 8 as "below trend and rising", and 2 as "above trend"[1]. The general slowdown of economic growth that occurred in 2011, following the strong growth of 2010, is thought to be attributable to a range of factors, including:
(a) the completion of the stockbuilding phase of the inventory cycle that normally follows a recession;
(b) the economic shock caused by the Japanese tsunami of March 2011;
(c) the loss of output due to the continuing deleveraging by banks and the consequent restriction of credit to companies;
(d) the effect on demand of continuing deleveraging by companies and households;
(e) the effect on demand of the reductions in public expenditure and the other fiscal adjustments in the fiscal aftermath of the Great Recession;
(f) the eurozone crisis and the fear of a European banking crisis resulting from the expected restructuring of the Greek government's debt;
(g) the fear of a global financial crisis resulting from contagion from the Greek crisis leading to a sovereign default by one of the larger PIIGS countries.