The Aftermath of Financial Crises

Carmen Reinhart; Kenneth Rogoff

doi:10.1257/aer.99.2.466

American Economic Review Vol. 99 No. 2 2009

The Aftermath of Financial Crises

Carmen Reinhart¹; Kenneth Rogoff²

¹ School of Public Policy and Department of Economics, 4105 Van Munching Hall, University of Maryland, College Park, MD 20742. · ² Economics Department, 232 Littauer Center, Harvard University, Cambridge MA 02138–3001.

Abstract

A year ago, we presented a historical analysis comparing the run-up to the 2007 US subprime financial crisis with the antecedents of other banking crises in advanced economies since World War II (Reinhart and Rogoff 2008a ). We showed that standard indicators for the United States, such as asset price inflation, rising lever age, large sustained current account deficits, and a slowing trajectory of economic growth, exhibited virtually all the signs of a country on the verge of a financial crisis—indeed, a severe one. In this paper, we engage in a similar com

DOI: 10.1257/aer.99.2.466
Volume: 99
Issue: 2
Pages: 466-472
Language: en
Sources: bibtex:phds-export.bib openalex crossref

The Aftermath of Financial Crises

Abstract

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