Next Stop, Recession?
Posted at 11 a.m. on Dec. 21, 2012
Menzie Chinn looks at recent data from the Congressional Budget Office that shows the impact of falling off the “fiscal cliff” will likely be a recession in 2013.
“I included a 2013Q4 projection of GDP assuming tax increases for income less than $250K are eventually eliminated… In light of this evening’s events, I think this seems a bit optimistic… Some could be delayed until some agreement could be made, thereby possibly avoiding a downturn… One can only hope.”
