Paul Krugman, winner of this year’s Nobel economics prize, said on
Monday that the world could face a Japan-style, decade-long slump…
"A scenario I fear is that we’ll see, for the whole world, an
equivalent of Japan’s lost decade, the 1990s — that we’ll see a world
of zero interest rates, deflation, no sign of recovery, and it will
just go on for a very extended period," he told a news conference.
"And that’s unfortunately very easy to see happen."
If it is any (minor) consolation, growth is usually understated during such downturns, because it is more likely to take the form of hard-to-measure quality improvements rather than big expenditure-intensive projects.