Recession, volatility likely for 2010, says SG economist

The credit crisis has put an end to the ability of monetary authorities to smooth business cycles, and therefore recessions will become more frequent, says Albert Edwards, London-based economist at Société Générale. He adds that another downward cycle in developed countries is likely to strike some time in 2010. "The world economy will go into another recession more quickly than people expect," says Edwards, a self-confessed macro bear. His model portfolio has been overweight governm…