Back from the Brink

Christina Romer, the current chair of the Council of Economic Advisers, concludes her paper Back from the Brink this way:

There is no question that the economic crisis that began in earnest last fall has been unlike any since the Great Depression. As I have described today, the key reason that we begin this fall with a sense of hope rather than dread of a second Great Depression is because the policy response in 2008 and 2009 has been fast, bold, and effective.

But, now is not the time for a victory lap. To turn that sense of hope into reality for the millions of Americans without a job will require continued vigilance and the courage to stick with programs that are working until their work is truly done. And, to turn the pain of the last year into more than just a bad memory, we have to use it to spur fundamental improvements in our regulatory structure. Only by building a new regulatory framework for the twenty-first century can we help ensure that our children and grandchildren will not have to walk their economies back from the brink, as we have had to do this past frightful year.