IMF says world economy will shrink 1.3% in 2009. I wonder when some important guy will use the word depression.
DEPRESSION
“IMF Says Recession Will Be Deeper, Recovery Slower” - Bloomberg 4/22 Wow I was really shocked to hear this and see them revise their forecast [sarcasm].
it occurred to me that it might not be a good idea to have a strict indicator-based definition of a depression, because the idea might become self-fulfilling. the last thing any economist would want to do is to provide the proverbial straw that breaks the camel’s back. i hate to sound like a cop out, but i think we will just know when we are in a depression.