The IMF’s most recent forecasts project that the EU’s GDP will fall 4.7% this year and continue to shrink (-0.1%) in 2010 (IMF, 2009). Financial market turbulence, credit shortages/deleveraging, higher unemployment, and steep reductions in activity in certain industries as resources reallocate will inevitably lead to a non-negligible short-run (i.e.
The negative impact of the financial crisis on potential output necessitates an EU-led policy response
Declan Costello, Gert Jan Koopman, Kieran Mc Morrow , Gilles Mourre, István P. Székely, Alexandr Hobza, 15 July 2009
Topics: Global crisis
Tags: climate change, demographic ageing, EU reform, potential output, public finances
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