Costs of the Great Recession

Gavyn Davies says 'Let's look at opportunity costs.' He acknowledges that several economies have now returned to their previous peak levels of output. However, if you look at the trendliness that had been established prior to the onset of the Great Recsssion, the output of developed economies as a whole remains about 12 per cent below these trendlines.

Davies also follows up on my recent post re the job market. Again, looking at what might have been if the trend held, we need an extra 6.9 million jobs before the job market can be said to be back to normal.