Do economic downturns provide a long term boost to the growth of potential output? The answer, based on an examination of Depression era experience, is nuanced. TFP growth across the 1930s resulted from the confluence of three tributaries. The first was the continuing high rate of TFP growth...

Do economic downturns provide a long term boost to the growth of potential output? The answer, based on an examination of Depression era experience, is nuanced. TFP growth across the 1930s resulted from the confluence of three tributaries. The first was the continuing high rate of TFP growth...

The events associated with the financial crisis and recession of 2007-2009 continue to unfold. If the output loss from this recession ends up in the range of the 1982 downturn, it will be because Congress and the Federal Reserve moved more quickly and effectively with immediate remedies than was...