My Photo


  • Subscribe to emails of blog posts
    Enter your Email

    Preview | Powered by FeedBlitz

Econ Blogs


  • Get this widget from Widgetbox


« Savings Rate Usually Rises in Recession: Fortune Has It Wrong | Main | Marketing in a Recession: Advice from John Quelch »

February 12, 2009


David Cooke


Love your monthly charts and notes.

Take a look at Harvard professor of economics Robert Barro's article in the Wednesday Wall Street Journal, page A15 titled, "What are the odds of a Depression?". His analysis suggests more than a 20% chance of this US downturn being severe enough to be classified as a depression (10% drop in GDP).

Business managers should plan based on several scenarios, giving each scenario a rough probability of occurance. This helps them think about strategies under various circumstances. Like buying fire insurance even though that scenario is unlikely.

David Cooke

The comments to this entry are closed.