Europe: How Deep Is a Crisis? Policy Responses and Structural Factors Behind Diverging Performances
-
The effects of the current crisis on the level of output, and consequently on unemployment and poverty, are likely to be deep and long lasting; they should not be underestimated, especially now that some timid signs of recovery are appearing. The crisis was triggered by the US financial sector, but its roots are real, and can be traced to the deepening income inequality of the last three decades, which led to a chronic deficiency of aggregate demand. In the Unites States, the center of the crisis, the policy reaction has been bold, and as a consequence the effects of the crisis are less important than in the eurozone, where only France has a comparable performance. The policy inertia of the eurozone countries, in fact, is more structural, and is related to the institutions for the economic governance of Europe. The statute of the ECB and the Stability and Growth Pact, that reflect a doctrine opposed to discretionary macroeconomic policies, constrain eurozone governments and its monetary policy. The relatively better performance of France can in fact be explained with these lenses: on one side it has a well developed system of automatic stabilizers, and on the other it suffered less than other OECD countries the deepening of income inequality.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
Artikel in diesem Heft
- Research Foundation
- Democracy, Autocracy and Bureaucracy
- Incomes in South Africa after the Fall of Apartheid
- Poverty and Disequalization
- Dysfunctional Finance: Positive Shocks and Negative Outcomes
- Policy Analysis
- Impact of Political Reservations in West Bengal Local Governments on Anti-Poverty Targeting
- Rethinking Global Economic and Social Governance
- Public Finance and Economic Development: Reflections based on Experience in China
- International Rules for Trade in Natural Resources
- Macro Crises and Targeting Transfers to the Poor
- Symposium
- Symposium: The Return of Counter-cyclical Policy - Editorial Preface
- Asia: Counter-Cyclical Policies: Indian Experience and Some General Observations
- Asia: China's Policy Responses to the Global Financial Crisis
- Latin America: Counter-Cyclical Policy in Brazil: 2008-09
- Latin America: The Structural Fiscal Balance Policy in Chile: A Move Toward Counter-Cyclical Macroeconomics
- Latin America: Comments on Financial Regulation and International Capital Flows in Latin America
- Africa: Africa's Counter-Cyclical Policy Responses to the Crisis
- Europe: How Deep Is a Crisis? Policy Responses and Structural Factors Behind Diverging Performances
- Europe: Counter-Cyclical Policies in Light of the Global Financial Crisis: The Case of Turkey
Artikel in diesem Heft
- Research Foundation
- Democracy, Autocracy and Bureaucracy
- Incomes in South Africa after the Fall of Apartheid
- Poverty and Disequalization
- Dysfunctional Finance: Positive Shocks and Negative Outcomes
- Policy Analysis
- Impact of Political Reservations in West Bengal Local Governments on Anti-Poverty Targeting
- Rethinking Global Economic and Social Governance
- Public Finance and Economic Development: Reflections based on Experience in China
- International Rules for Trade in Natural Resources
- Macro Crises and Targeting Transfers to the Poor
- Symposium
- Symposium: The Return of Counter-cyclical Policy - Editorial Preface
- Asia: Counter-Cyclical Policies: Indian Experience and Some General Observations
- Asia: China's Policy Responses to the Global Financial Crisis
- Latin America: Counter-Cyclical Policy in Brazil: 2008-09
- Latin America: The Structural Fiscal Balance Policy in Chile: A Move Toward Counter-Cyclical Macroeconomics
- Latin America: Comments on Financial Regulation and International Capital Flows in Latin America
- Africa: Africa's Counter-Cyclical Policy Responses to the Crisis
- Europe: How Deep Is a Crisis? Policy Responses and Structural Factors Behind Diverging Performances
- Europe: Counter-Cyclical Policies in Light of the Global Financial Crisis: The Case of Turkey
