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Chapter II. The World Economy

Published online by Cambridge University Press:  26 March 2020

Andrew Gurney ,
Jan Willem In't Veld  and
Ray Barrell
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Extract

GNP growth in the major seven economies continues to decline from the cyclical peak reached in 1988. The latest national accounts statistics show that all major seven economies are now growing more slowly than they did last year, with the United States, United Kingdom and Canada in recession. This slowdown in activity appears to have been caused primarily by the tightening of monetary policy that occurred between 1988 and 1990. Short-term interest rates rose by 4.4 percentage points in Germany between 1987 and 1990, by 3 percentage points in Japan between 1987 and 1990, and by 2.2 per cent in the United States between 1987 and 1989.

Type
Articles
Information
National Institute Economic Review , Volume 136 , May 1991 , pp. 34 - 59
Copyright
Copyright © 1991 National Institute of Economic and Social Research

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Footnotes

∗

We would like to thank: Andrew Britton and Garry Young for their comments on this chapter; Helen Finnegan and Valerie Lozachmeur for preparing the charts and tables.

References

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