Found 3 article(s) for author 'Great recession'

How The Great Recession Changed Economic Thought

How The Great Recession Changed Economic Thought. Edward Glaeser, 2017, Book, “The past three decades have been characterized by vast change and crises in global financial markets—and not in politically unstable countries but in the heart of the developed world, from the Great Recession in the United States to the banking crises in Japan and the Eurozone. As we try to make sense of what caused these crises and how we might reduce risk factors and prevent recurrence, the fields of finance and economics have also seen vast change, as scholars and researchers have advanced their thinking to better respond to the recent crises.Link

Tags: , , , ,

Investment Hangover and the Great Recession

Investment Hangover and the Great Recession. Andrei Shleifer, July 1, 2015, Paper. “We present a model of investment hangover motivated by the Great Recession. In our model, overbuilding of residential capital requires a reallocation of productive resources to nonresidential sectors, which is facilitated by a reduction in the real interest rate. If the fall in the interest rate is limited by the zero lower bound and nominal rigidities, then the economy enters a liquidity trap with limited reallocation and low output. The drop in output reduces nonresidential investment through a mechanism similar to the acceleration principle of investment…” Link

Tags: , , , , , , , , , , ,

Transfer payments and monetary expansion

Transfer payments and monetary expansion. Robert Barro, 2014, Paper. “The economic recovery since the end of the Great Recession in 2009 has been weak in the United States and elsewhere. The average growth rate of U.S. real GDP since 1948 was 3.2 percent per year. In the recession from 2007 Q3 to 2009 Q1, GDP fell by 4.3 percent. But this decline is 9 percent when gauged relative to trend; that is, after factoring in normal growth. To make up for this shortfall, the subsequent recovery has to attain growth rates averaging above 3.2 percent for several years. As an example, the GDP growth rate averaged 4.4 percent per year from 1983 to 1989…” Link

Tags: , , , , , ,