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The economy does not have a “stall speed”

The economy does not have a “stall speed” of between 1.5% and 2.0% that means whenever growth falls below this rate a recession is imminent. This is especially the case when the economy current has so much spare capacity. As long as any euro-zone break-up is fairly orderly and Congress postpones most of the fiscal tightening due next year, then another recession remains unlikely.

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