paul gregory's presentation
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![Page 1: Paul Gregory's presentation](https://reader036.vdocument.in/reader036/viewer/2022082700/549979eeb4795905158b4681/html5/thumbnails/1.jpg)
The U.S. Recession
Paul Gregory
Hoover Institution, Stanford
University of Houston
![Page 2: Paul Gregory's presentation](https://reader036.vdocument.in/reader036/viewer/2022082700/549979eeb4795905158b4681/html5/thumbnails/2.jpg)
Issues
• Causes – housing bust and net worth
• Failure of regulation?
• Wall Street excesses?
![Page 3: Paul Gregory's presentation](https://reader036.vdocument.in/reader036/viewer/2022082700/549979eeb4795905158b4681/html5/thumbnails/3.jpg)
GDP During Recessions
0
20
40
60
80
100
120
140
1 2 3 4 5 6
Great depression (29-36)
73-78 (oil shock)
81-88 Stagflation)
90-97 (Great Moderation)
2007-2012 (Obama)
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Why Not a “Normal” Recession?
• Say financial crises take longer to resolve
• Never faced with such a dire situation before
• Changing institutions in lending market
• Massive Keynesian stimulus and debt
![Page 5: Paul Gregory's presentation](https://reader036.vdocument.in/reader036/viewer/2022082700/549979eeb4795905158b4681/html5/thumbnails/5.jpg)
End of the Keynesian Consensus?
• Obama argument: Would have been worse
• John Taylor: failure for well known reasons