Is It Possible To 'Double Dip' The Economy?

We should all be well aware that "All This Has Happened Before and It Will Happen Again" When it comes to economic history.

There are signs the U.S Economy could soon emerge from Recession. But there are also fears that a recovery could lead to inflation and another downturn in 2010.

CNNMoney.com reported that the recession entered its 17th month this past week, and despite some encouraging signs, few expect a true recovery until the end of this year at the earliest.

"If the United States experiences a too rapid recovery, there may be a risk of another recession in 2010," said Bart van Ark, vice president and chief economist of The Conference Board in a report last Wednesday. "It may fuel expectations for a return to inflation, adding to the uncertainty concerning the pattern and path of economic recovery."

Inflation? Really? Isn't it a little early to start worrying about rising pricing pressures when many are still concerned about deflation?

Van Ark conceded that the the likelihood of another recession on the back of this one, a so-called double-dip recession, is small. But they've happened before, most recently in the 1980's, when a short recession in 1980 was followed by a 16-month downturn spanning 1981 and 1982.

Some of the concerns about inflation are legitimate, but the bigger concern for the immediate term is to get the global economy back on track. Let's actually have a recovery first before we worry about a double dip.