Prescriptions to fix global faultlines

From 1960 until the 1991 recession, recoveries from recessions in the United States were typically rapid. From the trough of the recession, the average time taken by the economy to recover to pre-recession output levels was less than two quarters, and the lost jobs were recovered within eight months. The recoveries from the recessions of 1991 and 2000-2001 were very differ-ent. Although production recovered within three quarters in 1991 and just one quarter in 2001, it took 23 months from the trough of the recession to recover the lost jobs in 1991 recession and 38 months in the 2001 recession.

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