It may not be another Great Depression, but leading economists agree the current downturn is indeed a Great Recession. Nouriel Roubini, professor of economics and international business at New York University, Kenneth Rogoff, professor of economics and public policy at Harvard University, and Nariman Behravesh, chief economist and executive vice president for IHS Global Insight held a panel discussion recently that is now available for public view at www.cera.com.
Describing the current recession as a “once in a 50-year event,” Rogoff told panelists, “I’m ‘constructive’ about 2010 in that we’ll have tepid growth in the world economy. It’s unusual for a recession to last more than two years. However, it will be very slow coming out of it. The big growth will be in some of the emerging markets. It’s the developed countries where the biggest hurt is occurring.”
Rogoff said nothing will get better unless the banking crisis is solved. Even Obama’s $790 billion stimulus is temporary unless “proper decisive action with the banks” is taken.