Brendan Keenan: Taking the hard actions now may just save us in long term
Published 25/08/2011 | 05:00
THERE is no consensus on the name, but an emerging one on what to do about it. As for names, some economists are daring to use the 'D' word -- depression -- after the series of downward revisions to growth estimates in recent weeks.
One suggestion is the Little Depression, to distinguish it from the Great Depression of the 1930s. Except that, whatever it is, it doesn't feel particularly little. So most prefer the Great Recession, or the Great Correction.
To me, the latter seems best at describing what has been going on. It is a correction, made necessary by the enormous build-up of debt across the rich economies -- so enormous that the correction was bound to be enormous, too.