Borio, Claudio, Kharroubi, Enisse, Upper, Christian, Zampolli, Fabrizio, (2016), “Financial cycles, labour misallocation, and economic stagnation”, Voxeu, 14 Απριλίου
Some analysts claim that secular stagnation is responsible for the disappointing post-crisis economic performance. This column provides a different explanation that points to an unsuspected villain: the misallocation of resources (in our case, labour) during the pre-crisis financial boom and the long shadow it has cast post-crisis. The findings draw on an empirical analysis covering more than 20 advanced economies over 40 years. They add strength to the view that the economy has been struggling with the legacy of a major financial boom and bust that has left long-lasting scars on the economic tissue. They also raise broader questions about the interpretation of hysteresis effects, the need to incorporate credit developments in the measurement of potential output and the design of policy more generally, and the role and effectiveness of monetary policy in the short and long term.
Σχετικές Αναρτήσεις
- Dräger, Lena, Proaño, Christian R., (2016), “Cross-Border Banking and Business Cycles in Asymmetric Currency Unions”, IMK Working Paper, Nr. 161, Ιανουάριος.
- Poghosyan, Tigran, (2015), “How Do Public Debt Cycles Interact with Financial Cycles?”, IMF, Νοέμβριος.