Rogoff: Why this time is really different
“Kenneth Rogoff, Harvard professor, former chief economist at the International Monetary Fund, and internationally respected expert on recessions, says this downturn doesn’t fit neatly into any prior models. His 2009 best-selling and widely cited book with Carmen Reinhart, This Time is Different: Eight Centuries of Financial Folly, examines the booms and busts that helped shape today’s global economy. The coronavirus pandemic and ensuing recession have profoundly amplified trends that were already at work in the global economy, but how it evolves from here is the great unknown. This time is certainly different.”
USAGOLD note: This theme – the pandemic as catalyst rather than cause – is a recurring one among prominent analysts. It suggests a deeper wound and longer recovery. Some think the damage permanent with residual high unemployment, resurgent inflation, and weak corporate earnings permanent features of a new, albeit distressed economy.
Repost from 6-18-2020