Withstanding Great Recession like China
نویسندگان
چکیده
The Great Recession was characterized by two related phenomena: (i) a jobless recovery and (ii) a permanent drop in aggregate output. Data show that the United States, Europe, and even countries with lesser ties to the international nancial system have su¤ered large permanent losses in aggregate output and employment since the nancial crisis, despite unprecedented monetary injections. However, the symptoms of the Great Recession were not observed in China, despite a 45% permanent drop in its exports one of the largest trade collapses in world history since the Great Depression. Our empirical analysis shows that Chinas success in escaping the Great Recession is attributable to its bold and powerful 4 trillion renminbi stimulus package launched in late 2008. We study the precise channels through which the stimulus programs work in China. We also construct a simple model to rationalize the dramatically di¤erent impacts of stimulus programs across countries.
منابع مشابه
China’s Maritime Interest and the Great Game at Seas
Linking China’s interest in the maritime waters arises from the geo-strategic importance of Sea Lines of Communications (SLOCs) vital to the oil supply of the country. China is building strategic relationships and developing a naval capability to establish a forward presence along the SLOCs that connect China to the Middle East and to Africa. The entire stretch includes South China Sea, Indian ...
متن کاملBell and Blanchflower Youth Underemployment in the Uk in the Great Recession R1 Youth Underemployment in the Uk in the Great Recession
One of the main puzzles associated with the Great Recession has been the muted increase in recorded unemployment in the UK. In this paper we explore possible explanations for the behaviour of the UK labour market during the period of the recession. We establish that there has been significant underemployment, which partly explains the sluggish increase in unemployment, but also means that (i) s...
متن کاملThe More Things Change, the More They Stay the Same? The Safety Net and Poverty in the Great Recession
Much attention has been given to the large increases in safety net spending during the Great Recession. We examine the relationship between poverty, the safety net, and business cycles historically and test whether there has been a significant change in this relationship. We find that post–welfare reform, Temporary Assistance for Needy Families did not respond during the Great Recession and ext...
متن کاملLong-Term Nonemployment and Job Displacement
The unprecedented rise in long-term unemployment (LTU) during the Great Recession has raised the question whether LTU contributed to the persistent decline in the aggregate employment rate. An important difficulty in evaluating this question is that standard measures do not capture the duration of joblessness for the rising number of nonemployed workers not formally classified as unemployed in ...
متن کاملThe Great American Recession and forgone healthcare: Do widened disparities between African-Americans and Whites remain?
OBJECTIVE During the Great Recession in America, African-Americans opted to forgo healthcare more than other racial/ethnic groups. It is not understood whether disparities in forgone care returned to pre-recession levels. Understanding healthcare utilization patterns is important for informing subsequent efforts to decrease healthcare disparities. Therefore, we examined changes in racial dispar...
متن کامل