Global Chartbook

The seizing of financial markets that followed Lehman Brothers’ failure in September 2008 caused the global economy to fall into its deepest recession in decades. By the spring of 2009 industrial production (IP) in the 30 countries that comprise the Organisation for Economic Cooperation and Development (OECD) had plunged more than 15 percent from year-earlier levels. But the policy response—unprecedented … The seizing of financial markets that followed Lehman Brothers’ failure in September 2008 caused the global economy to fall into its deepest recession in decades. By the spring of 2009 industrial production (IP) in the 30 countries that comprise the Organisation for Economic Cooperation and Development (OECD) had plunged more than 15 percent from year-earlier levels. But the policy response—unprecedented monetary easing, expansionary fiscal policy, and the shoring up of private sector balance sheets—led to stabilization in economic activity in mid-2009 that subsequently morphed into global recovery. By early this year, the year-over-year rate of IP growth in the OECD countries had turned positive again. However, another financial crisis, in the form of sovereign debt problems in the Euro-zone, could be a distinct possibility. Will the global recovery continue, or does another global recession loom? Thank you for your interest in Wells Fargo’s Economic Commentary by Email. You are receiving this message because you have requested Economic Commentary information and updates sent via email. If you no longer wish to receive these emails, please click on the following link to access the Economic Commentary by Email registration page: http://www.wachovia.com/economicsemail.

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