“There will be a recession in Australia, because of the collapse of investment and because of the collapse of animal spirits – and this is because of what’s happening in China,” he said.
In that scenario, a short, sharp shock would be preferable to the entrenched, or secular, low or zero growth pattern that has taken hold in countries such as Japan.
From Fairfax:
…”The recession itself would not be the problem,” he said, “because some recessions are necessary.
