The Post-Bubble US Economy Implications for Financial Markets and the Economy

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.

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.

Elias Karakitsos is at Global Economic Research.

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
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