The recession that  BIS Review 41/2009  1  originated in the United States has spread around the world through confidence, financial, and trade channels.
The consequent drop in global demand can be seen in sharp relief in recent industrial production figures, which have – to use a too-familiar phrase – “fallen off a cliff.” U.S. industrial production is down 11 per cent from its peak – with a majority of the losses in motor vehicle production.