Coronavirus: Crisis to unleash a deep recession for jobs under OBR report
Sky’s Ed Conway says the OBR’s crystal ball foresees a hugely damaging picture for jobs, whatever the scenario.
This might sound improbable but just over a decade ago many people were bemoaning the fact that economics had become so boring.
Inflation was low, growth was stable and for a period the fashionable thing to say was that the technocrats had triumphed: the era of boom and bust was over.
But, as the Office for Budget Responsibility has pointed out, we have now had two “once-in-a-lifetime shocks” in the past decade or so. There are plenty of differences between the financial crisis and what we’re going through now – some good, some bad.
But the overarching lesson from 2008 and what followed is that early expectations for a quick bounce-back to normality are often wildly overoptimistic.
Back then a lot of people expected a v-shaped recovery, but it never materialised. Indeed, it took about seven years for gross domestic product per head to get back to where it was before that crisis hit.