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Financial Crisis or Innovation Crisis? Both!

NEW YORK  Former world chess champion and political activist Garry Kasparov and internet entrepreneur Peter Thiel, squared off with Harvard economist Kenneth Rogoff on the question whether advanced economies experience a financial crisis or an innovation crisis.

Mr Rogoff, who authored This Time is Different: Eight Centuries of Financial Folly (2009) with Carmen Reinhart, argues that the systemic financial crisis is the root cause of the prolonged economic slump in the western world. In their research, Mr Rogoff and Ms Reinhart found economic growth following a systemic financial crisis to be about a full percentage point below trend growth.