Andrew Haldane explains that crisis-induced recessions tend to be longer and deeper. He looks to the years following the Great Depression and the UK recession of the early 1990s as potential guides to how we will emerge from today’s Great Recession, concluding that it will be a bumpy ride. That has knocked on to financial markets. "As in 1933, the fear factor is rife in today’s financial markets. The prompt has been sovereign debt concerns in parts of Europe and the United States. This is but the latest – and most severe – in a series of waves in sentiment since the onset of the crisis. Risk appetite has yo-yoed."
Press release