Sorry, U.S. Recoveries Really Aren’t Different
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Oct. 16 (Bloomberg) -- Five years after the onset of the2007 subprime financial crisis, U.S. gross domestic product percapita remains below its initial level. Unemployment, thoughdown from its peak, is still about 8 percent. Rather than the V-shaped recovery that is typical of most postwar recessions, thisone has exhibited slow and halting growth.
This disappointing performance shouldn’t be surprising. Wehave presented evidence that recessions associated with systemicbanking crises tend to be deep and protracted and that thispattern is evident across both history and countries. Subsequentacademic research using different approaches and samples hasfound similar results.