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Keywords:housing crisis 

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Will COVID-19 Leave Lasting Economic Scars?

Researchers and policymakers are wondering whether the economic losses associated with the COVID-19 pandemic will prove temporary or persistent. Examining the housing crisis of 2006–09 may provide some clues. Despite the fact that the housing crisis represented a temporary demand-side shock, it had lasting negative effects on employment and GDP in regions most exposed to the boom and bust in house prices.
Richmond Fed Economic Brief , Issue 20-07 , Pages 5

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