Thursday, October 20, 2011

Kenneth Rogoff Sees Another Three Years Before Economy Is Normal: Interview On The Great Contraction In McKinsey Quarterly

From McKinsey Quarterly, "Understanding the Second Great Contraction: An interview with Kenneth Rogoff: The economist and coauthor of This Time Is Different explains what history can teach us about the global downturn and why climbing out of it is still rife with risks." by Bill Javetski and Tim Koller:
Kenneth Rogoff: The historical experience gives a very clear view that the aftermath of a financial crisis brings slow and halting growth, sustained high unemployment, and surging public debt—with the overhang of public and private debt being the most important impediment to a normal recovery from recession.
Indeed, we haven’t yet gotten back to the same per capita GDP where we started. Our perspective is that we have never left the recession; we’re still very much in it. I hope in another two or three years things will be feeling more normal. But there are a lot of difficulties to traverse before we get there.
Read more of Rogoff's interview.

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