TY  - JOUR
AU  - Jagannathan,Ravi
AU  - Kapoor,Mudit
AU  - Schaumburg,Ernst
TI  - Causes of the Great Recession of 2007-9: The Financial Crisis is the Symptom not the Disease!
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15404
PY  - 2009
Y2  - October 2009
DO  - 10.3386/w15404
UR  - http://www.nber.org/papers/w15404
L1  - http://www.nber.org/papers/w15404.pdf
N1  - Author contact info:
Ravi Jagannathan
Kellogg Graduate School of Management
Northwestern University
2001 Sheridan Road
Leverone/Anderson Complex
Evanston, IL 60208-2001
Tel: 847/491-8338
Fax: 847/491-5719
E-Mail: rjaganna@kellogg.northwestern.edu

Mudit Kapoor
Indian School of Business
Gachibowli
Hyderabad - 500032
India
E-Mail: mudit_kapoor@isb.edu

Ernst Schaumburg
Federal Reserve Bank of New York
33 Liberty Street
New York, NY 10045
E-Mail: ernst.schaumburg@ny.frb.org
AB  - Globalization has made it possible for labor in developing countries to augment labor in the developed world, without having to relocate, in ways not thought possible only a few decades ago. We argue that this large increase in the developed world's effective labor supply, triggered by geo-political events and technological innovations, coupled with the inability of existing institutions in the US and developing nations themselves to cope with this shock set the stage for the great recession. The financial crisis in the US was but the first acute symptom.
ER  -