Working Paper: CEPR ID: DP9321
Authors: John Driffill
Abstract: This paper is based on presentation given at the June 2011 Conference of the Centre for Growth and Business Cycle Research at the University of Manchester. It reviews key features of the 2007-08 financial crisis, the subsequent 'great recession' and the European public debt problems; in the light of these it discusses new avenues of research that have been opened up in response to recent events.
Keywords: DSGE models; financial shocks; fiscal policy; macroeconomics; quantitative easing; unemployment
JEL Codes: E30; E44; E60
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Financial shocks (F65) | Increased unemployment (J64) |
| Austerity measures (E65) | Further decline in economic activity (F44) |
| Increased unemployment (J64) | Public policy responses (J18) |
| Financial shocks (F65) | Reduced lending and investment (G21) |
| Austerity measures (E65) | Reduced aggregate demand (E20) |