Is it possible that we are experiencing a V shaped economic recovery? History will be the ultimate judge of how economic growth plays out following the worst economic downturn since the Great Recession but this chart does indicate some evidence of a V shaped recovery.
Doesn't the V-shaped recovery illustrate (ex-post) the case for the fiscal stimulus post 2008? While most countries remain technically stimulative in terms of fiscal policy since they are running smaller deficits (as a %age of GDP) is it not possible that growth --greatly fueled by growing private sector consumption basesd on increasing access to credit courtesy of financial innovation-- will remain below trend compared to the last generation (30-40 years) given that a lot of the value chain has been shipped overseas thus keeping real wage growth stagnant for the bottom three quartiles society. Add demography to the mix and there is the case for even lower growth.
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