Sunday, February 10, 2008

Why economics is scary

In a recent NY Times column, Paul Krugman mentioned a paper that showed some parallels between the current US economic, and five major economic crisis in the past.

At his blog, he links to it (or rather, he links to a blog that links to it.

Is the 2007 U.S. Sub-Prime Financial Crisis So Different? An International Historical Comparison* (.pdf) by Carmen M. Reinhart and Kenneth S. Rogoff

To sum it up, the current US situation shows many parallels to earlier financial crisis that caused year-long recessions in the countries in which they took place. It might be that the US escape this, but it will probably take hard work from the next US president to do so.

Edit: The Chronicle of Higher Education has more (via The Big Picture).

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Anonymous Anonymous said...

This is off topic, but there's an interesting blog entry on the state of science in the Muslim world here:

February 10, 2008 8:33 PM  
Anonymous Anonymous said...

I forgot the link in the previous post:

February 10, 2008 8:34 PM  

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