"When you do look at the data the results are clear. In five of the six financial
crises since 1882 - the Great Depression of the 1930s was the sole exception -
the strength of the recovery in real Gross National Product greatly exceeds the
previous decline, by close to 6 percentage points over the eight quarters
following the cyclical trough.
"This is similar to what we see in the two severe
contractions in which there are no financial crises. The recent recession and
recovery are more similar to the Great Depression than the other episodes. Cross-country comparisons tell a similar
story. Unemployment actually recovered faster in countries hit by a financial
crisis than in those in a recession for other reasons. Of the nine foreign
countries for which the Bureau of Labor Statistics has produced comparable
unemployment data based on the same definition of unemployment, Reinhart and
Rogoff identify four as suffering from a financial crisis (Germany, Japan, the Netherlands
and the United Kingdom) and five as not (Australia, Canada, France, Italy and
Sweden). From January 2009 to December 2011, the unemployment rates in the
countries with financial crises actually increased less than in those that
avoided such a crisis (0.66 percentage points versus 0.86 percentage points)."
Read more:
http://www.foxnews.com/opinion/2012/11/05/financial-crisis-cant-explain-
current-slow-recovery/#ixzz2BSUbW0bM
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