Publication: How Resilient Were Emerging Economies to the Global Crisis?
Date
2011-04-01
ISSN
Published
2011-04-01
Author(s)
Abstract
This paper studies the cross-country
incidence of the 2008-2009 global crisis and documents a
structural break in the way emerging economies responded to
the global shock. Contrary to popular perceptions, emerging
market economies suffered growth collapses comparable, or
even larger, to those experienced by advanced economies
during the crisis. With such large financial and real shock,
most of the world economy came to a halt when the crisis
hit, with most countries resuming their pre-crisis growth
rates afterwards. While emerging economies were not able to
avoid the crisis collapse, they grew at a higher rate during
the post crisis, relative to before and, as usual, to
advanced countries. Moreover, emerging economies initiated
their recovery sooner. Breaking with the past, emerging
economies were able to conduct countercyclical policies, and
became more similar to developed countries in softening the
impact of the crisis and in their ability to pursue
expansionary policies.
Citation
“Didier, Tatiana; Hevia, Constantino; Schmukler, Sergio L.. 2011. How Resilient Were Emerging Economies to the Global Crisis?. Policy Research working paper ; no. WPS 5637. © http://hdl.handle.net/10986/3408 License: CC BY 3.0 IGO.”
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