A critical note on "This time is different"
AbstractThis article is structured as follows: the first section is based on Reinhart and Rogoff’s seminal papers (Am Econ Rev 98(2):339–344, 2008a, b, Am Econ Rev 99(2):466–472, 2009a, This time is different: eight centuries of financial folly, Princeton University Press, Princeton, 2009b, Am Econ Rev 100(2):573–578, 2010) and text book (2009), which today constitute the new cornerstones of conventional wisdom on the recurrence of financial crises throughout History, their development and aftermath. We deliver a critical view of this attempt to infer some systematic empirical relationship between debt, growth and inflation and underline the absence of core variables in this historical analysis. In Sect. 3, we go back 10 years to illustrate that conventional wisdom was much different at that time, emphasizing the peculiarity of each episode of the financial crises. This raises the issue of the relevancy of the cliometric approach to identify regularities down through History: so, should we trust cliometricians?
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Bibliographic InfoArticle provided by Association Française de Cliométrie (AFC) in its journal Cliometrica, Journal of Historical Economics and Econometric History.
Volume (Year): 6 (2012)
Issue (Month): 2 (May)
Financial and banking crises; Public debt; International financial markets; Regulation;
Find related papers by JEL classification:
- B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
- F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
- G01 - Financial Economics - - General - - - Financial Crises
- N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
- N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
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