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"They should co-ordinate macroeconomic policies to stop a steep global downturn"

The best recipe for avoiding a global recession
Before our political leaders get too fancy remaking capitalism
they should co-ordinate macroeconomic policies to stop a steep global downturn
Jeffrey Sachs, Financial Times, October 27 2008

A US downturn will not be avoided. US households cannot continue to spend more than their income as they have in recent years, even if the credit crunch eases.

Some other economies will also suffer home-grown recessions because they too allowed a housing bubble to develop, which has now burst.
This appears to be the case in Australia, the UK, Ireland and perhaps Spain.

The world economy is about $60,000bn, so a first-round demand decline of as much as $1,800bn would be about 3 per cent of world output. If there were no offsetting macroeconomic policy changes, the demand decline could be multiplied further to as much as 6 per cent

The writer is director of the Earth Institute at Columbia University and special adviser to Ban Ki-Moon, UN secretary-general

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Innan politikerna börjar göra om kapitalismen bör de undvika en global nedgång, anser Jeffrey Sachs
Rolf Englund blog 2008-10-28

Kan man undvika recession i USA när man måste minska importen med 600 miljarder dollar?
Rolf Englund på Nationalekonomiska Föreningen 30/11 2004