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Doomed to an Economic Double-Dip?

Nouriel Roubini, New York University | August 8, 2011

The world economy risks a double-dip, a second severe recession, thanks to an EU debt crisis, fiscal instability in the US, and slow manufacturing seemingly everywhere else. Policy makers are quickly running out of options to trigger recovery. ++ Now, economies that still have market access should “introduce new short-term fiscal stimulus while committing to medium-term fiscal austerity” and begin an orderly restructuring of debt. ++ Such “swift and targeted” policy action may be the only way to stave off a full-blown global economic depression.