Drivers of the Post-Crisis Slump in the Eurozone and the US
Robert Kollmann (),
Marco Ratto (),
Werner Roeger and
Lukas Vogel ()
MPRA Paper from University Library of Munich, Germany
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.
Keywords: Post-crisis slump; Eurozone; United States; demand and supply shocks; financial shocks (search for similar items in EconPapers)
JEL-codes: E2 E3 E5 E6 F3 F4 (search for similar items in EconPapers)
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Working Paper: Drivers of the Post-crisis Slump in the Eurozone and the US (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:78826
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