This Time is Different, Again? The United States Five Years after the Onset of Subprime

This Time is Different, Again? The United States Five Years after the Onset of Subprime

Carmen M. Reinhart and Kenneth S. Rogoff
Harvard University

Five years after the onset of the 2007 subprime financial crisis, GDP per capita in the United States remains below its initial level. Unemployment, although down from its peak, is still hovering near 8 percent. Rather than the V-shaped recovery that is typical of most post-war recessions, growth has been slow and halting. Based on our research (Reinhart and Rogoff, 2009), this disappointing performance should not be surprising. We have presented evidence that recessions that are associated with a systemic banking crises tend to be deep and protracted and that this pattern is evident across both the historical and cross country experience. Subsequent academic research using different approaches and samples have found similar results.

Full paper below…

~

4closureFraud.org

~

This Time is Different, Again? The United States Five Years after the Onset of Subprime

Leave a Reply