We next turn to comparisons between the US and other countries in the Second Great Contraction. The simplest of cross-country comparisons involves dividing the post-2007 crisis experience into two batches, those countries that experienced systemic banking crises and those that had milder borderline problems in their financial sector (which does not preclude them from having other serious “varieties” of crises, notably fiscal in this case.) 7 This applies the same criteria as Reinhart and Rogoff (2008). Figure 2 presents the evolution of per capital GDP normalized to equal 100 in 2007. The inset in the chart indicates which.
