Chart 5 compares the evolution of real GDP in the US during the Great Depression and during the recent financial crisis. I focus on the US because of data availability for the Great Depression period. 2  Welch (1992), Bikhchandani, Hirshleifer and Welch (1992). 3  Kocherlakota (2009), Farhi and Tirole (2009), Martin and Ventura (2011), Aoki and Nikolov (2010).
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