Bad plus bad equals worse

The key piece of bad news, today, from Chapter 3 of the IMF World Economic Outlook

Recessions that are associated with both financial crises and global downturns have been unusually severe and long-lasting. Since 1960, there have been only 6 recessions out of the 122 in the sample that fit this description… On average, these recessions lasted almost two years. Moreover, during these recessions GDP fell by more than 4½ percent. Reflecting in part the severity of these recessions, recoveries from synchronized recessions are weak.

Tags for this entry: policy macroeconomics recession imf stimulus