Posts Tagged ‘Carmen Reinhart and Vincent Reinhart’

We’re In the Pandemic Depression

August 11, 2020

We're In the Pandemic Depression

“What’s clear is that the Pandemic Depression resembles the Great Depression of the 1930s more than it does the typical post-World War II recession. To simplify slightly: The typical postwar slump occurred when the Fed raised interest rates to reduce consumer price inflation. They lowered rates to stimulate growth.

By contrast, both the Great Recession and the Pandemic Depression had other causes. The Great Recession reflected runaway real estate and financial speculation and their adverse effects on the banking system. The Pandemic Depression occurred when infection fears and government mandates led to layoffs and an implosion of consumer spending.”

— “Let’s call it what it is. We’re in a Pandemic Depression.” Robert J. Samuelson, Washington Post


“The shared nature of this shock—the novel coronavirus does not respect national borders—has put a larger proportion of the global community in recession than at any other time since the Great Depression. As a result, the recovery will not be as robust or rapid as the downturn. And ultimately, the fiscal and monetary policies used to combat the contraction will mitigate, rather than eliminate, the economic losses, leaving an extended stretch of time before the global economy claws back to where it was at the start of 2020.”

“The Pandemic Depression: The Global Economy Will Never Be the Same,” Carmen Reinhart and Vincent Reinhart, Foreign Affairs


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Image (based on a WPA photo by John E. Allen) by Mike Licht. Download a copy here. Creative Commons license; credit Mike Licht,

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