Growth Recovery in Southern Europe : A Dozen Lessons, Old and New
Greece, Ireland, Portugal, and Spain entered a period of severe economic and financial stress in the aftermath of the 2008 crisis. Their collective experience confirmed the primacy of total debt, private or public, in affecting the onset of, depth...
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okr-10986-256772021-06-10T09:02:07Z Growth Recovery in Southern Europe : A Dozen Lessons, Old and New Islam, Roumeen economic growth economic recovery debt crisis financial crisis financial markets fiscal expansion fiscal consolidation monetary policy stabilization distributional effects labor markets unemployment Greece, Ireland, Portugal, and Spain entered a period of severe economic and financial stress in the aftermath of the 2008 crisis. Their collective experience confirmed the primacy of total debt, private or public, in affecting the onset of, depth of, and recovery from economic crises. The year 2010 and the years following have demonstrated the ways in which policy responses to crisis-related downturns must be adapted when major international partners experience simultaneous growth slowdowns and markets exhibit increased risk aversion. This paper compares the recovery experience of these countries in light of recent policy debates and research on the impact of macroeconomic and structural reforms. It highlights that (a) the quality of the policies adopted to stabilize economies in the short run affects growth recovery in the long run; and (b) macroeconomic policies (fiscal and monetary) are most effective in supporting growth when they take into account structural differences between countries and when policies complement each other. The country experiences indicate that a holistic view of factors affecting investment, exports, and employment is needed to understand the impact of macroeconomic and structural reforms on output. In the absence of such a holistic view, policy may neglect to influence the binding constraints to growth. 2016-12-05T23:19:23Z 2016-12-05T23:19:23Z 2016-11 Working Paper http://documents.worldbank.org/curated/en/886151478108905259/Growth-recovery-in-southern-Europe-a-dozen-lessons-old-and-new http://hdl.handle.net/10986/25677 English en_US Policy Research Working Paper;No. 7877 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Eastern Europe |
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Digital Repository |
institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
English en_US |
topic |
economic growth economic recovery debt crisis financial crisis financial markets fiscal expansion fiscal consolidation monetary policy stabilization distributional effects labor markets unemployment |
spellingShingle |
economic growth economic recovery debt crisis financial crisis financial markets fiscal expansion fiscal consolidation monetary policy stabilization distributional effects labor markets unemployment Islam, Roumeen Growth Recovery in Southern Europe : A Dozen Lessons, Old and New |
geographic_facet |
Europe and Central Asia Eastern Europe |
relation |
Policy Research Working Paper;No. 7877 |
description |
Greece, Ireland, Portugal, and Spain
entered a period of severe economic and financial stress in
the aftermath of the 2008 crisis. Their collective
experience confirmed the primacy of total debt, private or
public, in affecting the onset of, depth of, and recovery
from economic crises. The year 2010 and the years following
have demonstrated the ways in which policy responses to
crisis-related downturns must be adapted when major
international partners experience simultaneous growth
slowdowns and markets exhibit increased risk aversion. This
paper compares the recovery experience of these countries in
light of recent policy debates and research on the impact of
macroeconomic and structural reforms. It highlights that (a)
the quality of the policies adopted to stabilize economies
in the short run affects growth recovery in the long run;
and (b) macroeconomic policies (fiscal and monetary) are
most effective in supporting growth when they take into
account structural differences between countries and when
policies complement each other. The country experiences
indicate that a holistic view of factors affecting
investment, exports, and employment is needed to understand
the impact of macroeconomic and structural reforms on
output. In the absence of such a holistic view, policy may
neglect to influence the binding constraints to growth. |
format |
Working Paper |
author |
Islam, Roumeen |
author_facet |
Islam, Roumeen |
author_sort |
Islam, Roumeen |
title |
Growth Recovery in Southern Europe : A Dozen Lessons, Old and New |
title_short |
Growth Recovery in Southern Europe : A Dozen Lessons, Old and New |
title_full |
Growth Recovery in Southern Europe : A Dozen Lessons, Old and New |
title_fullStr |
Growth Recovery in Southern Europe : A Dozen Lessons, Old and New |
title_full_unstemmed |
Growth Recovery in Southern Europe : A Dozen Lessons, Old and New |
title_sort |
growth recovery in southern europe : a dozen lessons, old and new |
publisher |
World Bank, Washington, DC |
publishDate |
2016 |
url |
http://documents.worldbank.org/curated/en/886151478108905259/Growth-recovery-in-southern-Europe-a-dozen-lessons-old-and-new http://hdl.handle.net/10986/25677 |
_version_ |
1764459873127366656 |