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Deutsche Bank: The Economy Still Hasn't Recovered, and the U.S. Probably Lost a Decade

At least in terms of output.
Have you seen my lost decade?

Have you seen my lost decade?

Illustration by Kiji McCafferty

Has the U.S. economy recovered from the financial crisis almost seven years ago?

The answer is a definite yes, according to one of the most popular definitions of economic recovery. Economists Carmen M. Reinhart and Kenneth S. Rogoff contend that a recovery from a banking crisis is complete when real GDP per capita reaches its pre-crisis peak. Based on that definition, the U.S. economy's average recovery time from the nine major banking crises it's experienced has been 6.7 years and the recovery from the last (2008) crisis was completed pretty much on schedule in late 2013.