Written by The Economic Development Curmudgeon
Our discussion on the New Normal and the Post-Financial Crisis centers chiefly around two major conceptual positions. The first is the New Normal label and its conceptual underpinnings and was developed by Mohamed El-Erian, CEO of America’s largest asset manager, PIMCO. The second conceptual position is drawn from Reinhart & Rogoff’s, This Time is Different. It is worth note that El-Erian put his concept together in 2008-2009 period and Reinhart and Rogoff in early 2010. They have been mostly right thus far into 2012. The article first appeared in January 2011 and has been edited and updated for this issue.