Bruce Greenwald: On What Today’s Recession Will Do To Future Economic Growth

As Americans struggle through the greatest economic calamity since the 1930s, the Schwartz Center for Economic Policy Analysis (SCEPA) asks, how will today’s recession affect tomorrow’s economic outlook?

For too long, economists have assumed that once an economy is deemed “recovered,” recessions exert no future toll. Unfortunately, this view is supported by neither theory nor evidence. Deep recessions can significantly reduce future output by undermining the quality of labor, delaying capital investment, and postponing or eliminating research and development. Depressed markets may become so compromised that they cannot correct themselves.

On November 9th, SCEPA Senior Feller Jeff Madrick hosted a discussion with distinguished economists on the permanent, long-term losses caused by deep recessions and propose immediate policy options to stem future losses

The Panel Includes: William Dickens, Distinguished Professor of Economics and Social Policy at Northeastern University; Bruce Greenwald, Robert Hielbrunn Professor of Finance and Asset Management at Columbia University; Laurence Ball, Professor of Economics at Johns Hopkins University; and others

Full video embedded below: