Current Issues in Economics and Finance

Policy Initiatives in the Global Recession: What Did Forecasters Expect?

Volume 18, Number 22012
JEL classification: E00, E52, E58, E62

Authors: Carlos Carvalho, Stefano Eusepi, and Christian Grisse

The global recession of 2008-09 led to monetary and fiscal policy responses by central banks and government authorities that were often unconventional in size and scope. A study of expansionary measures employed during the recession suggests that overall, the policies were likely effective in shaping the outlook for a recovery, as forecasters raised their expectations of inflation and GDP growth after the policies’ implementation. From this perspective, the policies stimulated economic activity and prevented deflationary pressures during the financial crisis.

PDF full articlePDF 11 pages / 563 kb
Press release
Order this article