As Paul Krugman recently pointed out, one of the central points they made in the latest IMF World Economic Outlook was that recessions caused by financial crises tend to get resolved on the back of export-lead booms, with countries normally emerging from the crisis with a positive trade balance of over 3 percent of GDP. The reason for this is
simple, since consumers are so laden-down with debt from the boom period, they are naturally more obsessed with saving than borrowing during the...
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