Quizzie

Question 1: What was the peak-to-trough decline in real GDP during the Great Depression of the 1930s?

Question 2: What was the peak-to-trough declinein real GDP during the Great Recession 2007-2009?

Question 3: What explains the difference between the two economic downturns?

Question 4: What policy prescription would be most effective in spurring recovery under the present circumstances?

Please related your answer in Question #4 to your other three answers.

1 comment… add one
  • steve Link

    #3-FDIC, UI, SS, Medicare, TARP, countercyclical shift in many other countries.

    #4-Time. Inventory overhangs are killing us. Need time for innovation and retraining. Long term, deregulate small business, especially at the local level. Break up the big banks. Maintain much larger capital requirements. Everything gets traded on a market with transparency. Top tax rate of 70% on income over $50 million (this could be limited, if legal, to just the finance and insurance sectors).

    Steve

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