This recession was the toughest phase of life, many ever saw and many more still going through it. All of us want that this slowdown should end as soon as possible. Economist say increased government spending is best way to infuse money into the system and increase demand. This method have been successful in past. So, then why US and UK govt is doing so. They can’t do it because if these govts get more into debt then after a certain point it might not be possible to come out of this debt. Hence, dont try for fast growth go slow.
Now, slow recovery means more jobless addition Year on Year, more failing banks and businesses. If worst has already past then it is the time for govt around the world to improve there balance sheets. Redistribution of money from Middle East nations and China to other parts of the world need to be realized.
We can neither go fast nor can we afford slow recovery. I still think this recovery is neither V-shaped nor W-shaped but half V and half U shaped. This means first half would be a steep fall as in V, this we have already seen. Second half will be U shaped, this means recovery will be flat and will rise slowly and steadly before comming into full swing.