Economic Scarring: Channels and Policy Implications

Economic Scarring: Channels and Policy Implications
Author :
Publisher : International Monetary Fund
Total Pages : 21
Release :
ISBN-10 : 9798400227257
ISBN-13 :
Rating : 4/5 ( Downloads)

Book Synopsis Economic Scarring: Channels and Policy Implications by : Mrs. Nujin Suphaphiphat

Download or read book Economic Scarring: Channels and Policy Implications written by Mrs. Nujin Suphaphiphat and published by International Monetary Fund. This book was released on 2022-12-09 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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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