Crisis mgmt cost

According to a recent IMF survey of 42 banking crises since 1970, total fiscal costs (net of recoveries) associated with “crisis management” averaged 13.3% of GDP, with bank recapitalizations alone averaging 6.0% of GDP. Given the size of the US economy, that would suggest that a total net fiscal cost for the current crisis of $1.9 trillion would be in line with historical averages, including $866bn in bank recapitalization.