Industrial production in perspective

April 3, 2009 in Finance

This post by Krugman inspired me to take a look at how the industrial production index has fared lately.  At first glance, the recent drop is pretty massive:

indprod-norm

But looking at it on a log scale tells a very different story:

indprod-logKrugman makes the point that the plunge paused in 1931 before resuming, and that the worst is not necessarily behind us. I make the point that relative to 1931 we've barely even started...

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