Kollmann, Robert, Pataracchia, Beatrice, Raciborski, Rafal, Ratto, Marco, Roeger, Werner, Vogel, Lukas, (2017), “Drivers of the post-crisis slump in the Eurozone and the US “, VoxEU, 27 April
The Global Crisis led to a sharp contraction and long-lasting slump in both Eurozone and US real activity, but the post-crisis adjustment in the Eurozone and the US shows striking differences. This column argues that financial shocks were key determinants of the 2008-09 Great Recession, for both the Eurozone and the US. The post-2009 slump in the Eurozone mainly reflects a combination of adverse aggregate demand and supply shocks, in particular lower productivity growth, and persistent adverse shocks to capital investment linked to the poor health of the Eurozone financial system. Mono-causal explanations of the persistent slump are thus insufficient. Adverse financial shocks were less persistent for the US.
Relevant Posts
- Smart, Christopher ,(2017), “The Financial Education of the Eurozone”, Project- Syndicate, 14 February
- Caldera-Sánchez, Aida , de Serres, Alain, Gori, Filippo, Hermansen, Mikkel, Röhn, Oliver, (2017), “Strengthening Economic Resilience: Insights From The Post-1970 Record Of Severe Recessions And Financial Crises”, OECD, December 2016 No. 20, February