A Confidence Conundrum
- Oct 8, 2015
By Peter G. Hall, Vice-President and Chief Economist, Export Development Canada
Just over a week ago, it was Super Tuesday for consumer confidence. Numbers were released for the UK, France, the EU as a whole, and the US. The data fluctuates with the ups and downs of the news streams, like stock market corrections, the Greek fiasco, geopolitical incidents, and brighter-than-expected economic releases. The big news on both consumer and business confidence is passť. It has long since left the doldrums of the post-crisis period; it recovered long ago. So why didnít the world economy recover along with it?
To put things in context, letís quickly review the recent odyssey of confidence. After riding high, confidence collapsed as the economic and financial crisis hit the world. American consumer sentiment plunged to levels not seen in recent history; they could best be labeled depressionary readings. Recovery ensued, but only to recessionary levels, and they parked there for years. In Europe
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