Proactive US policy makers bring colour back to dollar's faded green

The global macroeconomic outlook remains uncertain. The run-up to the current US downturn has many s...

The global macroeconomic outlook remains uncertain. The run-up to the current US downturn has many similarities to previous recessionary periods. We have seen unwanted inventory accumulation, rising unemployment and falling capacity utilisation, as we have in all the post-war US recessions. Similarly, housing market weakness and rising energy prices are common features that have preceded past periods of economic contraction. Add into this mix a tightening in financial conditions and the prospect of financial sector deleveraging as a result of the credit crunch and it is easy to suggest US r...