Bernanke rejects Great Depression comparisons as he says GDP could slump by 30%

- Advertisement -
- Advertisement -
- Advertisement -
- Advertisement -

Ben Bernanke, the former chairman of the Federal Reserve, is a scholar of the Great Depression, a background he put to use during the global financial crisis when he invented many of the emergency lending programs the central bank is now reusing.

But he thinks the Great Depression is a bad comparison to make to the current economic nosedive caused by the shutdowns in reaction to the coronavirus pandemic.

“People have made comparisons to the Great Depression. It’s not a very good comparison. The Depression was 12 years long,” he said at a presentation on Tuesday sponsored by the Brookings Institution, where he is a fellow-in-residence.

“This is like a natural disaster, and the response is more like an emergency relief than it is a typical stimulus or anti-recessionary response.” He said he was “pretty pleased” with the fiscal and monetary responses.

Bernanke’s prognosis for the economy was pretty grim, however, saying gross domestic product on an annualized basis could fall by 30% or greater in the second quarter. He raised the prospect the economy could be partly opened up in the summer and closed back down again in the fall.

“So overall, it could be a very bad year for the U.S. economy,” said Bernanke.

Originally Published on MarketWatch

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

Are There Any Safe Haven Investments Amid The Pandemic?

This week and, I’m guessing over the next two months, investors will be looking for safe haven investments or ways to protect their portfolios....

South American countries to request $15 bln credit line from IADB -Peru’s Vizcarra

LIMA, April 7  - Peruvian President Martin Vizcarra said on Tuesday he was coordinating with other South American countries to request a line of...

Khalid – The Movie Review

The first time that the heroes in the US-made film adaptation of the fantasy novel "Khalid" take an Egyptian prisoner to meet Khalid Abou...

How To Look Great In Fashion

Fashion is what we do, every day, while some call it frivolity, most people in fashion are passionate about what they do. People are...

The Benefits of Using Netflix

Netflix is one of the most talked about web sites on the internet. It has become a fixture in the homes of millions of...
Home of Science
Follow me