Oct. 16 (Bloomberg) -- Five years after the onset of the
2007 subprime financial crisis, U.S. gross domestic product per
capita remains below its initial level. Unemployment, though
down from its peak, is still about 8 percent. Rather than the V-shaped recovery that is typical of most postwar recessions, this
one has exhibited slow and halting growth.
This disappointing performance shouldn’t be surprising. We
have presented evidence that recessions associated with systemic
banking crises tend to be deep and protracted and that this
pattern is evident across both history and countries. Subsequent
academic research using different approaches and samples has
found similar results.
