Crisis and Growth (Eichengreen)

Crisis and growth in the advanced economies: what we know, what we do not, and what we can learn from the 1930s by Barry Eichengreen published by Palgrave (03/2011), indicated by Arthur Garbayo “This paper addresses the question of whether the medium- and long-term growth potencial of the advanced economies has been impaired by the global financial crisis. It evidence from the Great Despression of the 1930s to illuminate the prospects, concluding the following. First, the impact of weak bank balance sheets and heightened risk aversion made it harder for small firms, in particular, to fund investment projects. Second, there is little evidence that increased public debt or policy uncertainity had major effects in depressing investment…”