Finding the Policy Exit

By Nouriel Roubini
25 September 2009 @ 11:46 am EDT

There is a general consensus that the massive monetary easing, fiscal stimulus, and support of the financial system undertaken by governments and central banks around the world prevented the deep recession of 2008-2009 from devolving into Great Depression II. Policymakers were able to avoid a depression because they had learned from the policy mistakes made during the Great Depression of the 1930's and Japan's near depression of the 1990's.

Copyright Project Syndicate, Reprinted with permission.

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