The Global Economic Recovery 10 Years After the 2008 Financial Crisis

By Wenjie Chen, Mico Mrkaic, Malhar S Nabar

April 26, 2019

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Wenjie Chen, Mico Mrkaic, and Malhar S Nabar. The Global Economic Recovery 10 Years After the 2008 Financial Crisis, (USA: International Monetary Fund, 2019) accessed December 23, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper takes stock of the global economic recovery a decade after the 2008 financial crisis. Output losses after the crisis appear to be persistent, irrespective of whether a country suffered a banking crisis in 2007–08. Sluggish investment was a key channel through which these losses registered, accompanied by long-lasting capital and total factor productivity shortfalls relative to precrisis trends. Policy choices preceding the crisis and in its immediate aftermath influenced postcrisis variation in output. Underscoring the importance of macroprudential policies and effective supervision, countries with greater financial vulnerabilities in the precrisis years suffered larger output losses after the crisis. Countries with stronger precrisis fiscal positions and those with more flexible exchange rate regimes experienced smaller losses. Unprecedented and exceptional policy actions taken after the crisis helped mitigate countries’ postcrisis output losses.

Subject: Banking, Banking crises, Emerging and frontier financial markets, Financial crises, Financial markets, Global financial crisis of 2008-2009, Production, Total factor productivity

Keywords: Banking crises, Banking crisis, Credit growth, Crisis, Crisis trend, Economy, Emerging and frontier financial markets, Employment deviations, Financial crisis, GDP trend, Global, Global financial crisis of 2008-2009, Monetary policy action, Output deviation, Output deviations, Output performance, Total factor productivity, Total factor productivity, WP

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2019/083
Stock No:

WPIEA2019083
ISBN:

9781498305426
ISSN:

1018-5941

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