Drivers of the post-crisis slump in the Eurozone and the US
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.
KOLLMANN Robert;
PATARACCHIA Beatrice;
RACIBORSKI Rafal;
RATTO Marco;
ROEGER Werner;
VOGEL Lukas;
2017-05-05
CEPR - Centre for Economic Policy Research
JRC106131
http://voxeu.org/article/drivers-post-crisis-slump-eurozone-and-us,
https://publications.jrc.ec.europa.eu/repository/handle/JRC106131,
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