Return of the 'growth recession'

That's what Bank of America economists are forecasting for the fourth quarter and into 2011. They happen when the economy continues to grow but not strongly enough to generate significant numbers of jobs (aka a "jobless recovery"). The last time the nation had a growth recession was in 2002 and 2003 (though some economists argue that much of the decade was mired in minimal hiring). These things are insidious because they leave the economy is a sort of no-man's land - not weak enough to collect enough support for additional government stimulus, but not strong enough to bring down the unemployment rate. Growth recessions leave policymakers at an impasse. B of A expects the economy to grow at an anemic 1.8 percent pace next year.