eprintid: 1515982
rev_number: 34
eprint_status: archive
userid: 608
dir: disk0/01/51/59/82
datestamp: 2017-12-12 14:18:11
lastmod: 2020-02-12 20:58:02
status_changed: 2017-12-12 14:18:11
type: book_section
metadata_visibility: show
creators_name: De Grauwe, P
creators_name: Ji, Yuemei
title: Crisis management and economic growth in the Eurozone
ispublished: pub
divisions: UCL
divisions: A01
divisions: B03
divisions: D92
keywords: demand and supply policies, structural reform, economic growth, asymmetric adjustment, public investment
note: This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions.
abstract: The crisis management set up in the Eurozone after the eruption of the government debt crisis was characterized by two features. The first was the asymmetric adjustment to the current account imbalances that forced the deficit countries into intense austerity without a compensating policy of stimulus in the surplus countries. This led to a deflationary bias that created strong collateral damage on investment, both private and public. The second feature of crisis management was its focus on supply policies. This chapter suggests that supply side policies have insignificant effects, and sometimes even negative effects on long-term economic growth. As a result, together with the negative effects of austerity on investment, it can be concluded that the crisis management in the Eurozone not only exacerbated a demand problem, but also harmed the long-run growth potential of the Eurozone.
date: 2016
date_type: published
publisher: Oxford University Press
official_url: http://dx.doi.org/10.1093/acprof:oso/9780198754688.001.0001
oa_status: green
full_text_type: other
language: eng
primo: open
primo_central: open_green
verified: verified_manual
elements_id: 1158913
doi: 10.1093/acprof:oso/9780198754688.001.0001
isbn_13: 9780198754688
lyricists_name: Ji, Yuemei
lyricists_id: YJIXX03
actors_name: Ji, Yuemei
actors_id: YJIXX03
actors_role: owner
full_text_status: public
number: 2
place_of_pub: Oxford, UK
pagerange: 46-72
book_title: After the Crisis: Reform, Recovery, and Growth in Europe
editors_name: Caselli, F
editors_name: Centeno, M
editors_name: Tavares, J
citation:        De Grauwe, P;    Ji, Yuemei;      (2016)    Crisis management and economic growth in the Eurozone.                    In: Caselli, F and Centeno, M and Tavares, J, (eds.) After the Crisis: Reform, Recovery, and Growth in Europe. (pp. 46-72).   Oxford University Press: Oxford, UK.       Green open access   
 
document_url: https://discovery.ucl.ac.uk/id/eprint/1515982/9/Chapter2.V1.17-March-2016.pdf