During the depression of 1921, the Harding government did not intervene in the market, resulting in a quicker recovery
by Walter E. Block
South China Morning Post
A “U” or a “V”? That is the question – whether the economic recovery from the Covid-19 shutdown will be a long drawn-out process, a wide, flattish “U”, or a sharp, upward-bound one, a “V”.
To best wrestle with this question, let us look back a bit at some economic history regarding recessions and depressions, focusing on the US. Is this of interest to those following the course of the Chinese economy? Of course. When the US sneezes, China catches a cold. And, of course, the opposite is true as well.
Right now, the political relationship between these two countries has soured. But this will not, hopefully, always be true. In any case, economic law still operates, no matter what are the diplomatic relationships between nations.