Daily Archives: May 19, 2009

By Michael Pomerleano

The consequences of the banking crisis will linger for a long time. In a recent seminal paper, The Aftermath of Financial Crises, (December 19, 2008) Carmen Reinhart and Kenneth Rogoff find that the outcome of severe financial crises share three characteristics. Read more

By Benn Steil

The Congressional Budget Office estimates that the US budget deficit will reach $1.85 trillion this year and $1.38 trillion in 2010, 13.1 per cent and 9.6 per cent of gross domestic product respectively. Much more worryingly, it projects deficits averaging more than $1 trillion a year for the next 10 years, which will raise the US public debt-to-GDP ratio to more than 80 per cent by 2019.

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