Lost decades: the making of America's debt crisis and the long recovery

Debate on 6th Sep 2011 at 5:00pm

Location: Bruegel

Lost decades: the making of America's debt crisis and the long recovery

Lost Decades: The Making of America's Debt Crisis and the Long Recovery, by Jeffry A. Frieden and Menzie D. Chinn was presented and discussed at this event.

The U.S. economy lost the first decade of the twenty-first century to an ill-conceived boom and subsequent bust. It is now in danger of losing another decade to the stagnation of an incomplete recovery. How did this happen? In their forthcoming book, which was presented at this event, Jeffry A. Frieden and his co-author explain the political and economic roots of this crisis, as well as its long-term effects. They explore the political strategies behind the Bush administration’s policy of funding massive deficits with foreign borrowing. In addition, they show that the crisis was foreseen by many and was avoidable through appropriate policy measures. Finally, they examine the continuing impact of the huge U.S. public debt in the ongoing slow recovery from the recession.

Jeffry A. Frieden is Professor at Harvard University's Department of Government. His presentation was followed by comments by Daniel Gros, Director of the Centre for European Policy Studies (CEPS).

Click here for further information about the forthcoming book.

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