Deja Vu: Will the U.S. Undergo a Reprise of 1937?
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Mikka Pineda identifies striking similarities in U.S. inflation attitudes between the mid-1930s, when the U.S. began to show signs of recovery from the Depression, and 2009. The report serves as a qualitative accompaniment to her Comparing Three Crises report published earlier this year. Pineda dug deep through news and magazine archives to construct an account of the subjective economic assessments prevalent in the mid-1930s. She compares quotes from the mid-1930s side-by-side with quotes from 2009 to show that Americans during the Great Depression voiced the same concerns about excess bank reserves, budget deficits, competitive devaluations and commodities speculation as they do today. Even dissenting arguments followed the same script in both eras. The eerie resemblance in the psychological and economic backdrop of the mid-1930s and 2009 – both historic junctures when recovery was thought to to have begun – suggests the U.S. teeters on the edge of a double-dip.
3 Responses to “Deja Vu: Will the U.S. Undergo a Reprise of 1937?”
Lions (excess bank reserves) and tigers (public debt) and bears (currency depreciation), oh my!
I think its safe to say then as now the burden of proof for those that think the economy is on the brink of run away inflation is to explain how exactly consumers and producers are actually going to get a hold of credit to run up prices.
I saw this really good post this morning….