Tim Fernholz asks whether the recession will ever be over:
The Reinharts found that economic growth lags for years after a financial crisis ends. Advanced economies in particular feel the effect on their labor markets, with each that has faced a post-World War II financial crisis seeing higher unemployment after the crisis than before. This, in turn, suggests that what the United States faces is not a “cyclical” crisis but rather a long-term shock to the economy, something different from what we’ve experienced since World War II in the United States.
