Authors
Timothy J. Kehoe
Consultant, University of Minnesota, and National Bureau of Economic Research
Gonzalo Fernandez de Cordoba
Universidad de Salamanca
The Current Financial Crisis: What Should We Learn from the Great Depressions of the Twentieth Century?
Abstract
Studying the experience of countries that have experienced great depressions during the twentieth century teaches us that massive public interventions in the economy to maintain employment and investment during a financial crisis can, if they distort incentives enough, lead to a great depression.
