Why Does the Economy Fall to Pieces after a Financial Crisis ?

  title={Why Does the Economy Fall to Pieces after a Financial Crisis ?},
  author={Robert E. Hall},
T he worst fi nancial crisis in the history of the United States and many other countries started in 1929. The Great Depression followed. The second-worst struck in the fall of 2008 and the Great Recession followed. Commentators have dwelt endlessly on the causes of these and other deep fi nancial collapses. Less conspicuous has been the macroeconomists’ concern about why output and employment collapse after a fi nancial crisis and remain at low levels for several or many years after the crisis… CONTINUE READING
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