<BODY BGCOLOR="#80ffff">The Developing U.S. Recession and Guidelines for Policy Strategic Analysis (Interim Report), October 2001 by Wynne Godley and Alex Izurieta The United States should now be prepared for one of the deepest and most intractable recessions of the post–World War II period, with no natural process of recovery in prospect unless a large and complex reorientation of policy occurs both here and in the rest of the world. The general predicament is made worse by a deteriorating world economy; U.S. exports fell sharply in the first seven months of 2001, when the balance of payments was already heavily in deficit. <A HREF="http://www.levy.org/docs/stratan/recess.html">http://www.levy.org/docs/stratan/recess.html</A> <A HREF="http://www.levy.org/docs/stratan/pdfs/recess.pdf">http://www.levy.org/docs/stratan/pdfs/recess.pdf</A> </HTML>