The scale of the recent collapse in asset values and the magnitude of the recession suggest that activities connected to the increase in values over the 2002-07 period — notably, expansion of the financial markets, homebuilding, and real estate — were overstated. If this is true, aggregate...

The scale of the recent collapse in asset values and the magnitude of the recession suggest that activities connected to the increase in values over the 2002-07 period - notably, expansion of the financial markets, homebuilding, and real estate - were overstated. If this is true, aggregate U.S....