It is highly likely that, for the time being, the U.S. economy will experience sluggish growth, or even a moderate recession. The timing and pace of recovery of the U.S. economy will largely depend on when the housing market correction is completed and when the financial environment stops deteriorating.
11  See Cline, W (2005), The United States as a Debtor Nation, Washington DC, sowie Gourinchas, P O/Rey, H (2005), From World Banker to World Venture Capitalist: US External Adjustment and the Exorbitant Privilege, presented at the NBER Conference on G7 Current Account Imbalances: Sustainability and Adjustment. 12  See IMF (2005), loc cit.