Two Tales of Adjustment: East Asian Lessons for European Growth / Anusha Chari, Peter Blair Henry.

Format:

Book

Author/Creator:

Chari, Anusha.

Contributor:

National Bureau of Economic Research.

Henry, Peter Blair.

Series:

Working Paper Series (National Bureau of Economic Research) no. w19840.

NBER working paper series no. w19840

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Two Tales of Adjustment

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2014.

Summary:

Paths into the Asian Crisis of 1997-98 and the recent global financial crisis were similar, but the roads out could not be more different. Common wisdom has it that on impact Asia endured fiscal austerity imposed by the IMF whereas the IMF recommended stimulus in the case of the advanced nations at the epicenter of the crisis in 2008-09. While the IMF did recommend different policies to begin with, the fiscal adjustment in Asia was far more modest than is commonly known and the switch from stimulus to austerity in Europe was quite abrupt. The difference in fiscal stance helps explain the difference in the post-crisis paths of output and employment in the two regions.

Notes:

Print version record

January 2014.