organisation > Stern School of Business
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In 2013, the US will not only face direct effects of a fiscal drag, but also its indirect effect on private spending
Without a much easier monetary policy and a less front-loaded mode of fiscal austerity, the eurozone crisis will deepen.
Despite favourable macroeconomic indicators, US economic growth will remain weak and below trend throughout 2012.
Choosing austerity measures means a deeper recession in the short term, a blow the periphery may not be able to handle.
An economic model that does not address inequality will at some point face a decline of legitimacy.
The most viable option to restore competitiveness and growth is for peripheral countries to exit the eurozone.
The recent credit rating downgrade and Eurozone debt crises are slowly showing signs of The Great Depression 2.0.
The eurozone crisis is reaching climax. Greece is insolvent while Portugal, Ireland, Spain and Italy are struggling.
Data from the US and emerging market economies signals falling growth, and a possible double-dip recession.
Problematic investment policies and income disparities could cause instability in the world's second biggest economy.
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