Big Data

Strengthening The Resilience Of An Economy: Enlarging The Menu Of Stabilization Policy As To Prevent Another Crisis

Date Added: Aug 2009
Format: PDF

The financial crisis has affected the real economy in stages yet nevertheless at an unexpected rate and with all regions being affected simultaneously. It advanced almost independently of the regions' exposure to the actual initial causes, among them the sub prime crisis, innovative financial products, dubious micro-economic incentives, inefficient regulation and macroeconomic imbalances. The following analysis poses the question of how the national economic structures can be made more resilient to a shock (be it a financial crisis or another turbulence) and how economic policy can act in order to stabilize the economy before and after such a shock.