The visible hand in economics

A second recession?

Posted on: October 28, 2008

Or so say economists at Infometrics (a organisation I am involved with 😛 ).

Why should we expect another recession over the first half of 2009 – especially when we are coming out of a drought!

Well one justification could be that households are highly indebted, and the price of that debt is going up – so now households will want to pay some of it off.  When households are paying off debt they can’t consume – a factor that will reduce economic activity.

Discuss 😛

1 Response to "A second recession?"

A second recession?…

Why should we expect another recession over the first half of 2009 – especially when we are coming out of a drought! Well one justification could be that households are highly indebted, and the price of that debt is going up – so now ……

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