Monday, August 8, 2011


From Gauti B. Eggertsson's PDF (p.1476) linked by Clonal:

Roosevelt’s rise to power is modeled as a policy regime change, as in Thomas Sargent (1983) and Peter Temin and Barry Wigmore (1990). This paper formalizes Temin and Wigmore’s argument in a repeated game setting using a dynamic stochastic general equilibrium (DSGE) model and argues that the regime change can account for the recovery.

I can show you the regime change:

The turning points shown on this graph at 1933 and 1947 correspond almost exactly with the beginning and the end of the FDR administration.

1 comment:

Clonal said...

Now you know why the "Banksters" hated FDR, and the common person loved him, and why he was elected for four consecutive terms.