Who Gets Hurt In A Crisis?

There’s interesting research waiting to be done explaining just why some countries have been hit harder by the global financial crisis than others. For now, here’s an interesting observation from my former boss at the Reserve Bank of Australia, Glenn Stevens:

The lesson: the greater your involvement in producing high-value goods, the harder the fall. Perhaps macroeconomic stability comes despite GM, rather than because of it.
(HT: Peter Martin)