So you may be wondering—are we experiencing a new Great Depression or only a Great Recession? Many economists who look just at the U.S. say that the trends do not support the Great Depression position.
But two well-known economists have just written an article claiming that when one looks at the world, the trends show it “plummeting in a Great-Depression-like manner. Indeed, world industrial production, trade, and stock markets are diving faster now than during 1929-30.”
On the bright side, they also say that “the [world] policy response to date is much better.”
The piece is “A Tale of Two Depressions,” by Barry Eichengreen and Kevin H. O’Rourke. It is short and easy to read—you should check it out.