11. This Time Is Not Different: Blaming Short Sellers
- Author:
- Pierre Siklos
- Publication Date:
- 03-2012
- Content Type:
- Policy Brief
- Institution:
- Centre for International Governance Innovation
- Abstract:
- Reinhart and Rogoff's timely volume, This Time Is Different: Eight Centuries of Financial Folly (2009), makes it abundantly clear that financial crises are protracted affairs. The title of this policy brief highlights the irony of lessons never learned. History, in the form of recurring economic crises, does indeed repeat itself. Nevertheless, a closer look at Reinhart and Rogoff's often-publicized conclusion reveals that there are remarkable variations across individual countries' experiences, as well as across time. For example, the actual severity of crises can be exacerbated when a banking crisis is accompanied by a currency crisis. Most importantly, the severity of the recession that typically accompanies all types of financial crises is often determined by the response of policy makers.
- Topic:
- Economics, International Trade and Finance, Markets, Global Recession, Monetary Policy, and Governance