Publication

This commentary addresses some perceptions concerning recovery from the global financial crisis. The author asserts that the misguided belief that “this time is different” led policy-makers to permit the credit boom of the early 2000s to continue for too long, thus preparing the ground for the biggest financial crisis in living memory. But now, when it comes to recovery, the belief that this time should not be different might be equally dangerous. The observation that recoveries following a financial crisis are different suggests that standard macroeconomic policies might not work as one would usually expect.