Global Economic Slowdown May Last Up to 8 Years

The world is entering a recession that may last up to eight years as the U.S. heads toward a “lost decade” similar to Japan’s slowdown in the 1990s, said Eisuke Sakakibara, formerly Japan’s top currency official.

Sakakibara became known as “Mr. Yen” during his 1997-1999 tenure at the Ministry of Finance for his efforts to influence the yen rate through verbal and actual intervention in the currency markets.

“The world is set for a long-term structural slump reminiscent of the 1870s” when average annual growth was about 1 percent, Sakakibara, who is a professor at Aoyama Gakuin University, said today at a conference in Tokyo. The slowdown may last three to four years, and depending on the circumstances, may drag on for seven to eight years, he said.

via Sakakibara Says Global Economic Slowdown May Last Up to 8 Years – BusinessWeek.

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