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That happened 25 years ago. I was only meaning to reference growth since 2008. it's not clear why recent growth should be impacted by an ancient supply shock.
by jvm 12y ago
That happened 25 years ago. I was only meaning to reference growth since 2008. it's not clear why recent growth should be impacted by an ancient supply shock.
The same country's economy grew at double digit rates while recovering from their entire country being leveled to the ground. [1] It's not clear that supply shocks [necessarily] suppress growth at all.
[1] http://en.wikipedia.org/wiki/Wirtschaftswunder http://en.wikipedia.org/wiki/Wirtschaftswunder
- lispm 12y ago25 years is a very short time to rebuild a collapsed economy. We still pay for the East. Unemployment in the East is still high. We pay for pensions. There is payment between the German states, called 'Länderfinanzausgleich'. Not one eastern state in Germany ever has paid any money into it. There is some improvement in their financial situation, but it is far from self-sufficient.