Monday, September 24, 2012

Employment Losses: Comparing Financial Crises

by Bill McBride on 9/24/2012 01:15:00 PM

Last year economist Josh Lehner posted a number of charts and graphs as an update to work by Carmen Reinhart and Kenneth Rogoff: This Time is Different, An Update

Today, Lehner updated a few graphs again (through August, 2012). See: Checking in on Financial Crises Recoveries. Here is one graph and an excerpt:

Comparing Financial Crises Recoveries Click on graph for larger image.

From Lerner:

[W]hen the Great Recession is compared ... to the Big 5 financial crises and the U.S. Great Depression ... the current cycle actually compares pretty favorably. This is likely due to the coordinated global response to the immediate crises in late 2008 and early 2009. While the initial path of both the global and U.S. economies in 2008 and 2009 effectively matched the early years of the Great Depression – or worse – the strong policy response employed by nearly all major economies – both monetary and fiscal – helped stop the economic free fall.

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