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This Time is Different, Again? The United States Five Years after the Onset of Subprime

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  • Reinhart, Carmen
  • Kenneth, Rogoff

Abstract

We focus on four previous systemic financial crises that the United States has experienced since 1870. These include the crisis of 1873 (called the Great Depression until the 1930s), the 1893 crisis, the panic of 1907, and the Great Depression. Given that all of the earlier crises predate the creation of deposit insurance in 1933, and that three of the four crises predate the establishment of a central bank in the United States, one could well quibble about the claim that the relevant institutions are more comparable across centuries in the United States than across advanced countries over the last thirty years. Be that as it may, the comparison across systemic US financial crises does not: (i) support the view that the US recoveries from pre-WWII systemic crises were any swifter than the general cross-country pattern and (ii) that the US has fared worse this time around than in previous systemic crises.

Suggested Citation

  • Reinhart, Carmen & Kenneth, Rogoff, 2012. "This Time is Different, Again? The United States Five Years after the Onset of Subprime," MPRA Paper 51257, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:51257
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    References listed on IDEAS

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    1. Stijn Claessens & M. Ayhan Kose & Marco E. Terrones, 2011. "Financial Cycles: What? How? When?," NBER International Seminar on Macroeconomics, University of Chicago Press, vol. 7(1), pages 303-344.
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    3. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Is the 2007 US Sub-Prime Financial Crisis So Different?: An International Historical Comparison," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 56(3), pages 291-299.
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    Citations

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    Cited by:

    1. Abdoulaye Millogo, 2020. "Hysteresis Effects and Macroeconomics Gains from Unconventional Monetary Policies Stabilization," Cahiers de recherche 20-12, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    2. Dwyer, Gerald P. & Devereux, John & Baier, Scott & Tamura, Robert, 2013. "Recessions, growth and banking crises," Journal of International Money and Finance, Elsevier, vol. 38(C), pages 18-40.
    3. Lothian, James R., 2014. "Monetary policy and the twin crises," Journal of International Money and Finance, Elsevier, vol. 49(PB), pages 197-210.
    4. Antonio Pesce, 2013. "Is Decoupling in action?," ERSA conference papers ersa13p1252, European Regional Science Association.
    5. Dwyer, Gerald P & Devereux, John & Baier, Scott L. & Tamura, Robert, 2013. "Recessions, Growth and Financial Crises," MPRA Paper 48843, University Library of Munich, Germany, revised Oct 2012.
    6. Olivér KOVÁCS, 2013. "Black swans or creeping normalcy? – An attempt to a holistic crisis analysis," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 4, pages 127-143, June.

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    Keywords

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    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F3 - International Economics - - International Finance
    • N0 - Economic History - - General
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
    • N21 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: Pre-1913

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