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Will Biden's stimulus plan cause US economy to overheat?

Published on 01 March 2021

American GDP figures published 28 January show that the country’s economy continued to grow in Q4 2020 at an annualised rate of 4% compared to the previous quarter. This figure follows on from Q3 2020’s mechanically highly elevated growth figure of 33.4%, which was a result of the collapse in economic activity in Q2.

​This positive sequence has already led certain observers, such as James Hamilton, a professor at the University of California, San Diego, to announce that the USA’s Covid recession is over. According to Professor Hamilton, a specialist in recessions, the recovery in the second half of 2020 was strong enough that, if another recession occurs in 2021, it will be classed as a new phase (we describe this as a double-dip recession).

Read the rest of this article on SKEMA's research website, ThinkForward

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