This graph on British GDP is very scary:
It shows that the economic recovery following the start of the recession is actually worse than the one observed during the Great Depression in the 30s.
In my humble opinion, it seems that the dosage of the austerity medicine is killing patients all over Europe.
(Outsourced from Brad Delong's blog post)
and the central bankers really think that they understand what causes that fall in the 30's. I thing the population growth, slowing rapidily, is an important driver for the dificult we will face in the next 10 years, except for the US.
ReplyDeleteI think that 80 years later the reasons are much clearer now. At the time moneraty policy was much less understood than now. The gold standard, the poor coordination among countries, the trade tariffs, and the war reparations all contributed.
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