Los Angeles Times interviews Justin Wolfers on fourth-quarter economic slowdown
In a recent Los Angeles Times article Justin Wolfers commented on fears of a new recession following news that the U.S. economy contracted in the fourth quarter of 2012. Total economic output shrank by 0.1% in the last three months of 2012, causing some economists to speculate that the economy could be headed for another recession. Two straight quarters of contraction would officially indicate the start of another recession, the newspaper reported. Despite the disappointing figures, however, Wolfers said it is too soon to make such predictions.
"I'm sure we will start seeing the use of the dreaded 'R' word," Wolfers told the Times. "That's premature, and almost certainly wrong."
Wolfers did point out that, although the economy is still growing, the recovery is still tenuous and could be influenced by new developments in 2013.