July 26, 2018

The unending search for what´s behind the paltry, but long, expansion.

At this time, we are plodding along what has become the second longest expansion in available history. By this time next year, the length of this expansion will beat the record held by the 120-month expansion of 1991-01. Several attempts at an explanation have been made. Two years ago, for example, Greg Mankiw wrote “One Economic Sickness, Five Diagnoses” that have been further elaborated since: It may be tempting to blame the Great Recession of 2008-9 for the paltry 10- year growth rate. Indeed, this recession was a deep one. Yet the explanation for the poor long-run performance is not… Read More