johnny9fingers | Economics and the dreaded double-dip. (Reply)

Over the last couple of weeks there have been a few comments on the possibilities of 'Double Dips' in various economies around the world.

community.livejournal.com/talk_politics/708538.html

community.livejournal.com/talk_politics/710730.html

Nevertheless amongst many folk who follow economics in some casual fashion there was no agreement as to which countries' economies were liable to this second and difficult economic crisis. Some have argued that strict monetarist doctrine would enable whichever economy to right itself, others that Keynesian solutions were the only way to get economies back on track for growth.

We now have some more data and projections.

www.guardian.co.uk/world/2010/sep/23/irish-economy-double-dip-recession

This is interesting to the UK because many of the Coalition's politicians have used the Irish example as the way forward for the UK. But this 'Double Dip' has inherent problems of its own. I quote from the article:

Investors warned that fears about Ireland's ability to generate growth would push up the interest rates on its debt.

"Does the panel think" (to use the old phrase beloved of the BBC) that if the UK does 'Double Dip' that interest rates on the UK's debt will necessarily increase?

Would this affect the recovery even more?

If the dreaded 'Double Dip' does happen, will the electorate even know whom to blame? After all, it's all Gordon's fault, isn't it?

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