Category: Bailouts, Economy, Employment, Think Tank

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2 Responses to “Reinhart & Rogoff : Recovery From Financial Crises: Evidence From 100 Episodes”

  1. financeboomer says:

    Very useful and easy-to-read summary.

  2. Mattw says:

    “We examine the evolution of real per capita GDP around 100 systemic banking crises. Part of the costsof these crises owes to the protracted nature of recovery. On average, it takes about eight years to reach
    the pre-crisis level of income; the median is about 6 ½ years. Five to six years after the onset of crisis,
    only Germany and the US (out of 12 systemic cases) have reached their 2007-2008 peaks in real income.
    Forty-five percent of the episodes recorded double dips. Postwar business cycles are not the relevant
    comparator for the recent crises in advanced economies.”

    In other words, this time really is different if we’re talking about a financial crisis.