Is Us Economy Getting Weaker or Stronger
In recent years, global economy has been suffered several tremendous impacts. Troubles began in U.S mortgage market in 2007 and with the bankruptcy of Lehman Broth, global finance faced great pressure to collapse. From the end of 2007 to the middle of 2009, U.S economy fell by over 4% and that’s the worst recession after the Great Depression in 1930s. In this recession, nearly 9 million jobs were shed and the unemployment rate soared to 10% in the autumn of 2009. In order to cease the recession and get economy back to the track, U.S government and Federal Reserve adopted aggressive macro-policies, including capital injection to banks, significant programs supporting liquidity of financial market ,etc.Ben S. Bernanke, chairman of Fed, claims before the Joint Economic Committee in May 2013 that the economic growth has continued at a moderate pace and the Fed announces to reduce QE at the end of 2013. Christine Lagarde, chairman of IMF, is subscribe to Fed’s policy, predicting a higher growth in U.S. economy for 2014. At the same time, Bernanke and Lagarde also warn us that the risks do exist. From our prospective, we are optimistic that the economy in U.S. is getting stronger in general.
GDP: In viewing the trend and performance of U.S. economy, we need to pursue a macroscopic perspective. We analyze some important economic indicators. First we come to GDP, which is widely used by economists to gauge economic recession and recovery and measures the general power of one country’s economy.