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peaceandlove · 06-19-2009, 01:12 AM

A Tale of Two Depressions

Catherine and News & Commentary, June 18, 2009 at 11:06 am
By Barry Eichengreen & Kevin H. O’Rourke
Voxeu.org

“This is an update of the authors’ 6 April 2009 column comparing today’s global crisis to the Great Depression. World industrial production, trade, and stock markets are diving faster now than during 1929-30. Fortunately, the policy response to date is much better. The update shows that trade and stock markets have shown some improvement without reversing the overall conclusion—today’s crisis is at least as bad as the Great Depression.”

FULL Article and Charts Here: http://www.voxeu.org/index.php?q=node/3421

Excerpt:

Conclusion

To summarise: the world is currently undergoing an economic shock every bit as big as the Great Depression shock of 1929-30. Looking just at the US leads one to overlook how alarming the current situation is even in comparison with 1929-30.
The good news, of course, is that the policy response is very different. The question now is whether that policy response will work. For the answer, stay tuned for our next column.

06-19-2009, 01:12 AM	#8
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	Re: Economists see end to US downturn A Tale of Two Depressions Catherine and News & Commentary, June 18, 2009 at 11:06 am By Barry Eichengreen & Kevin H. O’Rourke Voxeu.org “This is an update of the authors’ 6 April 2009 column comparing today’s global crisis to the Great Depression. World industrial production, trade, and stock markets are diving faster now than during 1929-30. Fortunately, the policy response to date is much better. The update shows that trade and stock markets have shown some improvement without reversing the overall conclusion—today’s crisis is at least as bad as the Great Depression.” FULL Article and Charts Here: http://www.voxeu.org/index.php?q=node/3421 Excerpt: Conclusion To summarise: the world is currently undergoing an economic shock every bit as big as the Great Depression shock of 1929-30. Looking just at the US leads one to overlook how alarming the current situation is even in comparison with 1929-30. The good news, of course, is that the policy response is very different. The question now is whether that policy response will work. For the answer, stay tuned for our next column.