October 3, 2018

In the year following the 2008 financial crisis, economic activity declined in half of all countries in the world. Our analysis in Chapter 2 of the October World Economic Outlook shows that in many countries output is still well below levels that would have prevailed had output followed its precrisis trend.

Moreover, there are also signs that the crisis may have had lasting effects on potential growth through its impact on fertility rates and migration, as well as on income inequality.

Despite these effects, specific policies did have an effect on how individual countries fared after the crisis. Those in better fiscal shape, with better regulated and supervised banks, and flexible exchange rates generally suffered less damage.

There are signs that the crisis may have had lasting effects on potential growth.

Crisis costs Den Rest des Beitrags lesen »