The severity of the decline in detrended real GDP/capita is quite large. Remember, staying at the starting line of 100 requires 2% growth every year.
Saturday, July 2, 2011
Four Great Depressions
Corrections has been reading Great Depressions of the Twentieth Century (Kehoe and Prescott, eds.), and found it intoxicating. Below, Figure 1 from Kehoe and Prescott's first chapter: detrended GDP/capita for four countries between and including 1928 to 1938 (click to enlarge).