International Evidence on Recovery from Recessions, Issues 2009-2183
International Monetary Fund, IMF Institute, 2009 - Business cycles - 30 pages
Although negative shocks have persistent effects on output on average, this paper shows that macroeconomic policies and the structure of the economy can influence the speed of recovery and mitigate the persistence of the shock. Indeed, monetary and fiscal stimulus and foreign aid can spur a rebound, with impacts that are asymmetrically stronger than in nonrecovery years. Real depreciation and the exchange rate regime also have asymmetric growth effects in a recovery year relative to other years of expansion. Recoveries are more sluggish in open economies, partly because fiscal policy is less effective than in closed economies.
What people are saying - Write a review
We haven't found any reviews in the usual places.
Other editions - View all
International Evidence on Recovery from Recessions
Ugo Panizza,Valerie Cerra,Sweta Chaman Saxena
Limited preview - 2004
41 Sample actual output asymmetric impact banking crises relative business cycle capital account openness Cerra and Saxena Constant country characteristics currency crisis DEV NO SSA dummy that takes Dummy variable errors in parentheses estimate exchange rate regimes fiscal deficit fiscal policy fixed and intermediate fixed exchange rate fixed regimes foreign aid GDP growth GDP_DEF growth in recovery impact on growth impact on recovery IND DEV DEV industrial countries interaction intermediate exchange rate KAOPEN labor market rigidities LSIZE LTROUGH LTROUGH*OPEN macroeconomic measure monetary policy non-SSA developing countries Normal Recessions Number of id open economies percentage points lower policy on growth policy variables real external shock rebound from recession recession relative recessions associated Recovery after Normal recovery from recessions result reverse causality Robust standard errors Sample ALL IND Source Speed of Recovery statistically significant Sub-Saharan Africa subsample takes value trade and capital trade openness trend GDP variable that takes