Financial markets reveal potential for second Great Depression averted during Great Recession.
The article compares the Great Depression and the Great Recession by looking at how financial markets behaved during both periods. They found that a collapse in the stock market was a key feature of the Great Depression, with certain types of stocks performing better than others. The researchers used a model to show that policy interventions during the Great Recession likely prevented another Great Depression. They also discovered that these two events were unique compared to other financial crises around the world.