Economist Podcasts Pressure gauged: the road to recessions
Jul 5, 2022
Join Henry Kerr, Economics editor at The Economist, and David Rennie, Beijing bureau chief, as they delve into the looming threat of recessions in the U.S. and Europe, sparked by rising interest rates and energy prices. They discuss the reckless maneuvers of Chinese fighter pilots, reflecting a growing distrust of the West. A humorous haircut mishap leads to an intriguing conversation on global pricing dynamics, challenging traditional economic theories with unexpected insights.
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Recession Worries
- Recession worries are increasing as pandemic recovery seems more assured.
- Factors like inflation, energy prices, and China's COVID-19 response contribute to this concern.
Drivers of Downturn
- Higher interest rates in the US and energy prices in Europe are major drivers of the economic downturn.
- Initial signs of a global slowdown are appearing in economic data.
US Recession Threat
- The Federal Reserve's interest rate hikes, aimed at combating inflation, pose a recession threat.
- Historical data suggests a recession typically follows within 18 months to two years of such rate increases.