Tuesday, September 01, 2009

The Current Financial Crisis: What Should We Learn from the Great Depressions of the Twentieth Century?

Abstract:
Studying the experience of countries that have experienced great depressions during the
twentieth century teaches us that massive public interventions in the economy to maintain employment and investment during a financial crisis can, if they distort incentives enough, lead to a great depression.


Source: Federal Reserve Bank of Minneapolis and NBER

Download full pdf publication

No comments: