CAMBRIDGE: With the remarkable financial turbulence of recent months, many people are asking whether the world could somehow blunder into global recession or even global depression. Could the world-wide financial crisis of 1929-33 happen again? A year ago, the question itself would have seemed preposterous. Now that financial crisis has spread from East Asia to much of Latin America, parts of Africa, and Russia, and it has rattled the stock markets of the advanced economies. The question now deserves a very considered response.
CAMBRIDGE: With the remarkable financial turbulence of recent months, many people are asking whether the world could somehow blunder into global recession or even global depression. Could the world-wide financial crisis of 1929-33 happen again? A year ago, the question itself would have seemed preposterous. Now that financial crisis has spread from East Asia to much of Latin America, parts of Africa, and Russia, and it has rattled the stock markets of the advanced economies. The question now deserves a very considered response.