Morgan Stanley: Recessions Aren’t What They Used To Be

There’s no question that the stock market is off to a shaky start in 2016, sparking fears that a recession is imminent. In a new report, Morgan Stanley analyst Manoj Pradhan discussed why the modern economic world might be in for a growing number of recessions, but that they might not be as bad as those in decades past.

In terms of recession frequency, Pradhan said Morgan Stanley’s premise that recessions will begin to happen more frequently is based on a decline in developed market (DM) and most emerging market (EM) economic growth rates.

“A recession is twice as easy to see if trend growth is now (using the US as an example) 1.5 percent [rather] than the 3 percent it used to be,” Pradhan explained.

Recessions May Come, But That’s Not Catastrophic

However, the decline required to reach negative growth and trigger a recession is…

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