Seeds of Recovery After The Financial Crisis

Phelps, Edmund S.

The powerful downswing in economic activity in the past two years is not the only disturbing downswing experienced in the western world after the 1930s. This time the origins of the downswing are known – details aside – and there is no social unrest. Yet we have had little experience with downswings resulting from asset price collapse leading to near-insolvency and financial crisis. For that reason, it has taken considerable thought to understand the reasons this present downswing not only caused an end to he housing boom but also the beginning of a slump, or depression. Now the question is, what are the mechanisms of the upswing?


More About This Work

Academic Units
Center on Capitalism and Society
Center on Capitalism and Society, Columbia University
Center on Capitalism and Society Working Papers, 53
Published Here
September 22, 2017