the race for economic recovery

After a nearly month-long absence, FT columnist Samuel Brittan returns with a look at the race for recovery from recession in parts of the industrial world. Brittan identifies a clear winner: the United States, which “pulled out the monetary and fiscal stops to keep the economy going”. More stimulus is needed, however, to address the problem of jobless growth.

The fall in output [in the US] was slightly less than that experienced in the eurozone, the UK or Japan and the recovery has been much more impressive. It is the only one of the four main groups where output has recovered to above the pre-recession peak. ….

The annual rise in consumer prices has rarely risen much above 3 per cent and the main inflationary threat comes from external energy and commodity prices generated outside the developed world. The dollar, like the other main currencies (except sterling), has fluctuated since 2007, with no pronounced trend. ….

The real US problem is that of jobless recovery. This is the other side of the rapid rise in productivity

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