American Economic Resiliency - 11/11/14
The American economy is highly resilient, including to global economic dislocations. As pointed out in a recent article authored by writer Teresa Tritch, during the late 20th century, the world was waylaid by episodes such as the Asian financial crisis, Russian debt default and the collapse of hedge fund Long Term Capital Management. Through it all, the U.S. economy didn’t falter. In fact, the U.S. economy boomed toward the tail end of the century.
Today, the U.S. economy is again faced with a number of global headwinds. A recent report supplied by the International Monetary Fund determined that many nations in Europe, Asia and Latin America are in recession and many others are a risk of contraction. The Fund puts the chances for recession in the 18-nation euro area at 38 percent next year.
On top of that are jarring circumstances that include conflict in financial center Hong Kong, Ebola, Russian aggression in Ukraine, ISIS, and lone wolf attackers in North America. Despite all of these events and associated uncertainties, the International Monetary Fund forecasts that the U.S. economy has a good chance of expanding at a 3 percent pace of faster in 2015.