I think it could be helpful to distinguish between two kinds of crashes: Crashes brought about by an external shock (as with covid) and crashes brought about by internal effects of the financial systems (asset bubbles bursting). I think it is not self evident that the aftermath of those two types follow the same rules.
Yes, you could well be right. And there may be ones that are both—e.g. no doubt external shocks sometimes make a bubble burst; or maybe 9/11 accelerated the collapse of an already bursting bubble. Unfortunately, not being an economist, I’m not qualified to do a more sophisticated analysis!
I think it could be helpful to distinguish between two kinds of crashes: Crashes brought about by an external shock (as with covid) and crashes brought about by internal effects of the financial systems (asset bubbles bursting). I think it is not self evident that the aftermath of those two types follow the same rules.
Yes, you could well be right. And there may be ones that are both—e.g. no doubt external shocks sometimes make a bubble burst; or maybe 9/11 accelerated the collapse of an already bursting bubble. Unfortunately, not being an economist, I’m not qualified to do a more sophisticated analysis!