This Time it is Different

I have mentioned in previous posts the work of Ken Rogoff and Carmen Reinhart – co-authors of “This Time is Different” – 2009. Below is a summary from Amazon

Throughout history, rich and poor countries alike have been lending, borrowing, crashing–and recovering–their way through an extraordinary range of financial crises. Each time, the experts have chimed, “this time is different”–claiming that the old rules of valuation no longer apply and that the new situation bears little similarity to past disasters. With this breakthrough study, leading economists Carmen Reinhart and Kenneth Rogoff definitively prove them wrong.

However the rise of the coronavirus and the impact it is having on the global economy is not the same as previous recessions/ depressions in history. Ken Rogoff found it hard to think of a historical parallel and came up with the Spanish flu epidemic which killed millions of people worldwide. Rogoff talks to Paul Solmon of PBS about the impact of the coronavirus.

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