Economic Scarring: Channels and Policy Implications

Released on by Mrs. Nujin Suphaphiphat
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  • Economic Scarring: Channels and Policy Implications Book Detail

  • Author : Mrs. Nujin Suphaphiphat
  • Release Date : 2022-12-09
  • Publisher : International Monetary Fund
  • Genre : Business & Economics
  • Pages : 21
  • ISBN 13 :
  • File Size : 2,2 MB
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Economic Scarring: Channels and Policy Implications by Mrs. Nujin Suphaphiphat PDF Summary

Book Description: This paper documents the existence of medium-to-long term output losses following large crises using panel data that cover 192 countries from 1970 to 2015 and shows that the magnitudes of economic scarring depend on the nature of the shock, economic activity, and pre-crisis conditions. It also provides a thorough review of potential channels that can lead to scarring and presents novel empirical evidence on the significance of supply-side channels using cross-country sectoral-level data. Finally, the paper discusses policy implications based on the empirical findings.

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