Recoveries from recessions associated with banking crises : how does this one compare?

Hatchondo, Juan Carlos; Price, David A.; Tompkins, Jonathan

Briefing

Recoveries from recessions associated with banking crises : how does this one compare?

Abstract: Recessions associated with banking crises tend to differ from other recessions in that the weakness of the financial sector, particularly the limited supply of credit, encumbers the subsequent recovery. The recovery from the 2007-09 recession, compared to past recoveries from recessions associated with banking crises, is within the historical range in terms of its level of GDP growth. In terms of unemployment, however, the recovery from the 2007-09 recession is markedly weaker than the historical norm.>

Keywords: Economic growth; Business cycles; Recessions;