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Rule of Four

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Carmen Reinhart formerly at the Federal Reserve, says after a severe banking crisis it takes about 4 years to see a return to normal growth. With the current crisis having other facets like the overextended consumer intertwined with banking crisis, it is likely that it would take this long. He cautions business not to be overoptimistic.

Reviews of "This Time is Different" by Rogoff and Reinhart

01/21/2008

Boom, bust cycles, with high indebtedness, asset bubbles, and unsustainable current account deficits are followed by long periods of slow or nonexistent growth say Rogoff and Reinhart in their new book. This raises questions about the now current hypothesis that economic recovery will take place in 2011-2013. As the book's title suggests there are long periods in history that show this and it is gaining in credibility as the column by David Wessel in the Wall Street Journal July 21,2011, suggests.

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Alternative views to the economic contractions and slow growth theory after financial crises in Rogoff's "This Time Is Different"

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Grouped Articles

Seminal Economic Paper on Debt Draws Criticism

Wall Street Journal 04/16/2013

The Excel Depression

New York Times 04/18/2013

Spreadsheet Slips Not Economists' Only Problem

Wall Street Journal 04/20/2013

What Other Financial Crises Tell Us

Wall Street Journal 02/03/2009

Rule of Four

New York Times 03/01/2009

How Righteousness Killed the World Economy

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