Financial Fragility and Recovery Then and Now
72 Pages Posted: 26 Oct 2009 Last revised: 27 Nov 2009
Date Written: October 26, 2009
Abstract
The events associated with the financial crisis and recession of 2007-2009 continue to unfold. If the output loss from this recession ends up in the range of the 1982 downturn, it will be because Congress and the Federal Reserve moved more quickly and effectively with immediate remedies than was true in the 1930s. If an even more serious crisis occurs within the next decade it will be because the regulatory response ended up being less effective than what was summoned during the New Deal. NOTE: This is a draft version of chapter 12 from my book The Great Depression and U.S. Economic Growth, forthcoming from Yale University Press.
Keywords: Finanacial Fragility, Great Depression, Recession
JEL Classification: E32, E44, N12
Suggested Citation: Suggested Citation