Causes of the Great Recession of 2007-9: The Financial Crisis is the Symptom not the Disease!

Ravi Jagannathan, Mudit Kapoor () and Ernst Schaumburg

No 15404, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Globalization has made it possible for labor in developing countries to augment labor in the developed world, without having to relocate, in ways not thought possible only a few decades ago. We argue that this large increase in the developed world's effective labor supply, triggered by geo-political events and technological innovations, coupled with the inability of existing institutions in the US and developing nations themselves to cope with this shock set the stage for the great recession. The financial crisis in the US was but the first acute symptom.

JEL-codes: E0 E00 E2 E3 G0 G00 G01 G2 (search for similar items in EconPapers)
Date: 2009-10
New Economics Papers: this item is included in nep-cba, nep-hpe and nep-mac
Note: EFG
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Citations: View citations in EconPapers (7)

Published as Jagannathan, Ravi, Mudit Kapoor and Ernst Schaumburg. 2013. Causes of the Great Recession of 2007-9: The Financial Crisis Was the Symptom Not the Disease! . Journal of Financial Intermediation. 22(1): 4-29.

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