Economic Recovery

Professors Reena Aggarwal and Phillip Swagel provide an expert view of the economic recovery in the United States and around the globe. Although Wall Street seems to be recovering, they say Main Street still is struggling from the effects of the crisis. High unemployment and high credit card interest rates will contribute to consumer caution and slow retail growth, but experts and people in general are optimistic. Both professors urge a word of caution: a weak dollar and low interest rates may pose a threat to long-term financial stability. They predict another crisis around inflation if the Obama administration fails to address it soon. Contrary to previously held public opinion, the crisis has underscored that there is a role for government and regulation in the financial markets. Unemployment, the housing market, healthcare reform, and other issues will have significant impact on the pace and strength of the recovery, according to the professors. Emerging markets are a bright spot and will play a big role in bringing the global recovery out of the crisis. In short, the economy is stabilizing – but Aggarwal and Swagel expect slow, modest growth.

One Response to “Economic Recovery”

1. tmm says:

   December 4, 2009 at 1:21 am

   Question for the panelists: Realistically, how long will it take for consumer spending to pick up enough that new jobs are created? And, what type of spending will it take for the economy to get better?

   Also, the media has been focusing on transportation improvements to create jobs and get money out there to start rippling into the economy. How far will this type of government spending go to fix the economy, or is it just going to help a particular segment of the economy?