the cleansing depression

bethemasterofenglish

Senior Member
Japanese
Hello,

The following is from Financial Times. "Why it would be wise to prepare for the next recession"- FT.com

"..... The high-income economies are likely to hit a recession with much less room for conventional monetary loosening than before previous recessions.

What would then be the options?

..... Many would call for the cleansing depression they believe the world needs. Personally, I find this idea crazy, given the damage it would do to the social fabric."

Then, what does the words "the cleansing depression" mean in this context?


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  • Glasguensis

    Signal Modulation
    English - Scotland
    An economic depression is a period of economic contraction - employment, stock market prices and consumption fall. Here, the writer is saying that "many" believe that having such a depression now would have a cleansing effect, meaning that it would put an end to certain undesirable and unhealthy situations - the economy immediately after such a depression would be smaller but healthier.
     

    perpend

    Banned
    American English
    The financial rags write what they will, for their audience, for readership.

    One person's "cleansing depression" is another reader's "invest now".

    It's really not clear.
     
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