Podcast: Oliver Hartwich, Eric Crampton and Damien Grant on recessions and insolvencies
In a recent column for Newsroom (4 May 2021), Oliver Hartwich wrote about Europe, and whether its recovery will be worse than the recession. He wrote that the Covid-19 pandemic has not caused an ordinary recession - at least not in Europe. Normal economic downturns are characterised by spikes in insolvencies and jumps in unemployment.
But this time was different. There was a sharp economic contraction, to be sure. It was among the most severe contractions ever recorded in times of peace. Yet the usual effects of recessions did not materalise.
Oliver invited our chief economist Eric Crampton and Damien Grant to chat further about this, and also discuss if New Zealand was also experiencing similar effects when it comes to insolvencies and unemployment in the new Covid-19 era.
Listen to the full podcast below (31 minutes).