Free Exchange points to an excellent graph from Paul Krugman illustrating how the policy responses and automatic stabilizers during the current crisis have been much more successful than those during the Great Depression. The chart speaks for itself:
The authors conclude:
The world is not yet out of the woods, but for now at least, it seems that policy was much better this time around than it was in the early years of the Depression. And as a result, a great deal of human suffering has been avoided.
Let's hope this growth is sustainable.
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