The current rate of decline in world economies is actually worse than the great depression, according to professors of economics Berry Eichengreen, of U.C. Berkley, and Kevin H. O'Rourke, of Trinity College, Dublin.
In a series of charts and descriptions posted online by voxeu.org, the two economists take stock of all the major economies in the world, rather than isolating the troubled U.S. economy, since the last great depression was also an international phenomenon, not just a problem specific to the United States.
They're calling the large market corrections presently taking place around the world a “depression event” that is just beginning its earliest stages.
Their charts largely show more dramatic stages of decline than in 1929 by plotting large categories such as world output, world trade, world stock markets and industrial output.
All charts but three, including those for Poland, the United States and world money supply, show that economic conditions today are actually worse than the 1929 depression.
1 comment:
I want to continue to live in my sheltered bubble. Don't tell me things like this :)
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