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The Financial Crisis at 10: Will We Ever Recover?

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Abstract

A decade after the last financial crisis and recession, the U.S. economy remains significantly smaller than it should be based on its pre-crisis growth trend. One possible reason lies in the large losses in the economy?s productive capacity following the financial crisis. The size of those losses suggests that the level of output is unlikely to revert to its pre-crisis trend level. This represents a lifetime present-value income loss of about $70,000 for every American.

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  • Régis Barnichon & Christian Matthes & Alexander Ziegenbein, 2018. "The Financial Crisis at 10: Will We Ever Recover?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfel:00170
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    1. Congressional Budget Office, 2014. "Revisions to CBO's Projection of Potential Output Since 2007," Reports 45150, Congressional Budget Office.
    2. Congressional Budget Office, 2014. "Revisions to CBO's Projection of Potential Output Since 2007," Reports 45150, Congressional Budget Office.
    3. Congressional Budget Office, 2014. "Revisions to CBO's Projection of Potential Output Since 2007," Reports 45150, Congressional Budget Office.
    4. Congressional Budget Office, 2014. "Revisions to CBO's Projection of Potential Output Since 2007," Reports 45150, Congressional Budget Office.
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    3. Òscar Jordà & Fernanda Nechio, 2020. "Inflation Globally," Central Banking, Analysis, and Economic Policies Book Series, in: Gonzalo Castex & Jordi Galí & Diego Saravia (ed.),Changing Inflation Dynamics,Evolving Monetary Policy, edition 1, volume 27, chapter 8, pages 269-316, Central Bank of Chile.
    4. Ian W R Martin & Robert S Pindyck, 2021. "Welfare Costs of Catastrophes: Lost Consumption and Lost Lives," The Economic Journal, Royal Economic Society, vol. 131(634), pages 946-969.
    5. Tervala, Juha, 2021. "Hysteresis and the welfare costs of recessions," Economic Modelling, Elsevier, vol. 95(C), pages 136-144.

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