Update: Paul Krugman at Conscience of a Liberal points to Spencer England’s post in his column 8/1…Dan
I thought it would be interesting to post this chart of real private GDP in recoveries.
It clearly shows that since the great moderation we have experienced three recoveries that compared to previous recoveries were very weak. Whether this is the new norm is open to debate.
But interestingly, at this point in the recovery this measure of real private GDP is exactly the same as it was in the last cycle under Bush that Larry Kudlow called the “Goldilocks” recovery.