Industrialized world risks ‘lost decade’ — economists
| FRONTLINE |
 |
| Ninez Cacho-Olivares |
PARIS — With momentum sputtering in many countries, economists fear the industrialized world is facing a period of slow growth and high unemployment similar to the “lost decade” endured by Japan in the 1990s.
“The risk... is higher than ever,” said Philippe Trainar, a professor of economics at Paris-Dauphine University.
“The latest data shows that we were too optimistic about a recovery in the United States and maybe too pessimistic about Europe.”
The bursting of a financial and property market bubble in Japan in the early 1990s pushed what was then the world’s second economy into deflation — a period of sharply declining prices and salaries.
Japanese economic growth during the 1990s averaged out at just one percent a year and the country’s economy has now been overtaken by China.
Source: The Daily Tribune
URL: http://www.tribuneonline.org/commentary/20100903com3.html
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