The US is slowly recovering from the aftermath of the burst of the 'new economy' bubble - which was one of the worst in monetary history. Philip Arestis and Elias Karakitsos examine the causes and consequences of the burst of the 'new economy' bubble and investigate the impact on financial markets. The risks and long-term prospects for the economy and financial markets are also examined.

Autorentext

PHILIP ARESTIS is a Professor at the Cambridge Centre for Economic and Public Policy, University of Cambridge, and Senior Research Fellow at the Levy Institute, New York City. His publications include Introducing Macroeconomic Modelling: An Econometric Study of the United Kingdom and Money, Pricing Distribution and Economic Integration. He has been editor and joint editor, and has served on the editorial board, of a number of journals. ELIAS KARAKITSOS is at Global Economic Research. He has previously acted as an economic and investment advisor to many institutional investors, including Citibank/Citicorp, Oppenheimer, Allianz, Nestle and Abbey National.

Inhalt

Introduction Sector Imbalances and Long-term Consequences The Role of Fiscal and Monetary Policy Under Sector Imbalances Asset Prices under Current Circumstances For How Long Can the US Consumer Remain Resilient? Can the Investor do the Trick? Can the Recovery become Sustainable? Summary and Conclusions