World Is Heading For 'Great Stagnation', Says Goldman -- The Telegraph
There is a growing risk that the global economy will move from the 'Great Recession' into the 'Great Stagnation', according to economists at Goldman Sachs.
Stagnations typically mean long periods of sluggish growth of about 0.5pc, low inflation, rising and sticky unemployment, stagnant house prices, and lower returns on shares, they said.
There is a 40pc chance of the current situation developing into a period of stagnation among developed economies, Goldman calculated.
"Trends in Europe and the US are so far still following growth paths that would be typical of stagnations," they said in a note.
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My Comment: Of course .... if the Euro goes bust and takes down a number of banks .... the 'Great Stagflation' can easily turn into the 'Great Depression'.
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