August 28th, 2003


Twilight Zone Economics

Twilight Zone Economics by Paul Krugman

For about 20 months the U.S. economy has been operating in a twilight zone: growing too fast to meet the classic definition of a recession, but too slowly to meet the usual criteria for economic recovery. There's nothing particularly mysterious about our situation. But recent news coverage and commentary - in particular, the enthusiastic headlines that followed a modest increase in growth and a modest decline in jobless claims - suggest that some people still don't get it. So here's a brief refresher course on twilight zone Economics 101.
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