The conventional wisdom now holds that policymakers' response to the 2008 financial crisis enabled the world to escape a repeat of the Great Depression. But measured inequality has surged since the crisis, owing largely to the very measures that are so often lauded for preventing another catastrophe.
PRINCETON – From the start, policy responses to the 2008 financial crisis were colored by memories and interpretations of the Great Depression. The conventional wisdom now holds that the world avoided a repeat of the interwar catastrophe, largely because policymakers made better decisions this time around. But, while there is plenty of room for self-congratulation, two features of the post-crisis recovery cast a shadow over the celebrations.
PRINCETON – From the start, policy responses to the 2008 financial crisis were colored by memories and interpretations of the Great Depression. The conventional wisdom now holds that the world avoided a repeat of the interwar catastrophe, largely because policymakers made better decisions this time around. But, while there is plenty of room for self-congratulation, two features of the post-crisis recovery cast a shadow over the celebrations.