Global Chartbook: July 2010

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 entered its steepest downturn in decades. But the policy response—-unprecedented monetary … 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 entered its steepest downturn in decades. 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. Although IP in the OECD countries currently stands nearly 10 percent below its pre-recession peak, the rebound has been quite sharp, at least when measured by the year-over-year growth rate. 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.wellsfargo.com/economicsemail.