post-bubble

A post- bubble shakeout is likely to be the defining feature of the global economic outlook over the next few years .

But the sustainability of any post-bubble recovery is always dubious.

Today, the Federal Reserve is trying to re-expand demand in a post-bubble US economy.

However, if the monetary authority rides quickly to the rescue of a post-bubble economy, a Japanese-style trap can be avoided.

In short, look for a post-bubble world to remain in recession throughout 2009, followed by an anaemic recovery, at best, in 2010.

However, it does mean that some of the necessary, post-bubble adjustment is now taking place.

It is one of the myths of post-bubble economies that conditions are made worse by banks' unwillingness to lend.

The aftershocks of that post-bubble carnage have now brought Europe to the brink.

One, do not analyse a post-bubble recession as a normal business cycle.

The current account deficits of the post-bubble countries have all diminished a bit.

In essence, in post-bubble economies the private sector is expected to spend much less, relative to income, this year than two years ago.

And on some counts today's post-bubble policy challenges are more complex than anything Japanese policymakers ever faced.

And if history proves consistent, there will be many more shocking disclosures to come as the world readjusts to another post-bubble era.

Yet the central bank with the greatest influence on global monetary policy is the one confronting the post-bubble credit crunch.

Then there is the issue of portfolio diversification, which has failed to protect investors from the rigours of today's post-bubble market.

Its 1989 post-bubble experience involved zero interest rates, dysfunctional banks, broken politics and an ageing population.

Not surprisingly, the fiscal deterioration is also biggest where the private sector has cut back most: in the post-bubble economies.

The dot-com bubble had burst and the U. S. economy had entered a mild post-bubble recession.

The textbooks have little to say about post-bubble economies.

Such reforms are critical for a post-bubble, crisis-torn US economy.

The conventional wisdom of academic investment theorists is taking a terrible beating in the post-bubble era.

Its post-bubble predicament is made worse by the soaring energy prices that result from the strong growth of the world economy.

Politicians everywhere are naturally fearful of post-bubble consolidation because it always means higher unemployment and voter distress.

The fundamental reason that a reflationary shock is needed in a post bubble period is tied to the need to reduce the real burden of debt.

But that sapped post-bubble Japan of needed vitality.

What will history books say about the post-bubble era?

So do Japanese firms, many of which have large financial surpluses after a long period of post-bubble deleveraging.

Unemployment, now 3. 9%, may head back towards the post-bubble high of 5. 5%.