Let’s observe the past: The impact of past crisis on the unemployment rate.

So today I would like to share with you an interesting slide from Rogoff and Reinhart (2008). It shows an overview about the past crisis in the financial sector, the increase in unemployment and the duration.

This slide, demonstrates the fatal effect when wall street mitigates to main street.

Lets see if  this crisis will be better controlled due to the wide expertise collected over the past years.

One solution to solve a crisis, is to rebuild and redo the economy by war and reassign resources. But lets hope that nowadays leaders will not chose this path.