Analysis: Unemployment and housing woes historically hang on after an economic crisis

08/31/2010 | NPR.org

Although it has been three years since the financial crisis began, there will be a decade of higher unemployment and lower home prices, a new study finds. The study, conducted by husband and wife economists Vincent and Carmen Reinhart, looks at past economic crises, such as the Great Depression and the 1973 oil shock, and the state of the economy 10 years before the crisis, the year it hit and 10 years later. Ten years after downturns, unemployment historically remains "significantly higher," median housing prices are 10% to 15% lower, and per-capita GDP growth is also much lower than it was before the crisis, the study says.

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