naked capitalism: World Economy Falling Faster Than in 1929-1930

Apr 8, 2009

Shared by maryamkhan

I am learning more about economy right now and in particular what I am wondering that the "World economy falling faster than in 1920-1930."
As I was reading a blog post in my Google reader and it caught my attension because now a days our economy rate is much slow down as in past days of history.
Barry Eichengreen, an expert on the Great Depression, and Kevin O'Rourke, take issue with the notion that the current downturn is less severe than the Great Depression. While the slump in the US is not as bad, that mis-states the global picture.
The quote I chose here is basically saying that "many economists expect the US to suffer less than the big exporters, namely China, Germany, Japan. The reason is that the economic adjustment required of surplus nations is greater than that of debtors. Similarly, in the Great Depression, the US, then a major exporter, was harder hit than the over consuming importers such as Britain, who defaulted on their debts."
The one bit of cheer is that this time around, government action is more aggressive, but it remains to be seen whether it is sufficient.
I think that this not good conditions for us in many ways that our trade is mainly related to these countries so we are also affected from this.
Commentary on current economic and financial news.