Has the financial crisis changed the business cycle characteristics of the GIPSI countries?
Hughes Hallett, Andrew and Richter, C. 2012. Has the financial crisis changed the business cycle characteristics of the GIPSI countries? Bonn, Germany International Network for Economic Research.
|Authors||Hughes Hallett, Andrew and Richter, C.|
Since the financial crisis erupted in 2008, the governments of Portugal, Ireland, Italy Greece and Spain (GIPSI) find themselves in a position where financing their debts has become increasingly difficult. As a result, these governments reduced government expenditure and/or increased taxes in order to reduce their deficits. Hence, whilst other countries in the Eurozone – notably Germany - enjoy a recovery from the financial crisis, the GIPSI countries remain in recession. It is therefore no surprise that the business cycles of the northern and southern European countries have increasingly diverged. This in itself poses already a risk for the Eurozone, as it makes the common monetary policy less effective.
|Keywords||time-frequency analysis; coherence; growth rates|
|Publisher||International Network for Economic Research|
|Place of publication||Bonn, Germany|
|Web address (URL)||http://www.infer-research.net/files_publications/WP%202012_1%20-%20Hughes%20Hallett%20Richter.pdf|
|Publication process dates|
|Deposited||27 Nov 2012|
|Series||INFER Working Papers 2012.1|
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