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The Week Ahead: Cutting to the Quick
Central banks are prepared to take fresh measures to strengthen and extend the business cycle primarily because price pressures are below what their predecessors thought would be acceptable levels. Draghi, speaking for the ECB, the Federal Reserve, and the Bank of Japan ratcheted up their concerns, which, even without new initiatives, were sufficient to drive interest rates lower. There is no real definition of many terms economists throw around like recession or depression. The "two negative quarters of declining GDP" is not a technical definition but a rule of thumb. Ironically there weren't recessions before the ... (full story)