Are We Heading Towards A 1938 Style Recession?

Today’s economic environment has many parallels to the economic experiences of the 1930s according to Morgan Stanley’s global co-head of Economics and Chief Asia Economist Chetan Ahya.  In a research note published on Sunday, Chetan Ahya writes that the global economy is currently facing three main challenges, debt, demographics, and disinflation, or the 3D challenge for short.  Managerial Performance Incentives And Firm Risk During Economic Expansions And Recessions The economy faced the same 3D issues back in the late 1930s and the parallels between today’s economic troubles and those of 1937–38 are staggering. Recession build up The unproductive build-up of…