Abstract
The global economy witnessed an unprecedented financial and economic crisis following the collapse of Lehman Brothers in September 2008. Virtually no country escaped the repercussions of the turmoil, which were manifested in a fall in global trade and output, a collapse in asset markets across the world, and a liquidity crunch that brought the international financial system to the brink of disaster.
We are grateful to Junko Sekine for the excellent research assistance. Any remaining errors in the work are our own responsibility.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Adrian, T. and H. Shin (2010). “Financial Intermediaries and Monetary Economics.” Handbook of Monetary Economics. Washington, DC: IMF.
Alesina, A. R., Campante, and G. Tabellini (2008). “Why Is Fiscal Policy Often Procyclical.” Journal of the European Economic Association 6: 1006–1036.
Allen, F., and D. Gale (2000). “Financial Contagion.” Journal of Political Economy 108 (2000): 1–33
Andres, J., R. Domenech, and A. Fatas (2008): “The Stabilizing Role of Government Size.” Journal of Economic Dynamics and Control. (2000): 571–593.
Blanchard, O. and R. Perotti (2007). “An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output.” Quarterly Journal of Economics 117(4): 1329–1368.
Brunnermeier, M., A. Crockett, C. Goodhart, A. Persaud, and H. Shin (2009). “The Fundamental Principles of Financial Regulation.” Geneva Reports on the World Economy 11.
Corsetti, G., A. Meier, and G. Müller (2009). “Fiscal Stimulus with Spending Reversals.” CEPR Discussion Paper 7302.
Fatas, A. (2009). “The Effectiveness of Automatic Stabilizers.” Paper presented at the IMF Conference on Fiscal Policy.
Fatas, A. and I. Mihov (2008). “Fiscal Policy, Volatility and Growth.” In G. Perry and L. Servén (eds.), Fiscal Policy, Stabilization and Growth. The World Bank.
Gavin, M. and R. Perotti (1997). “Fiscal Policy in Latin America.” NBER Macroeconomics Annual.
Goodhart, C. (2010). “Is a Less Pro-cyclical Financial System an Achievable Goal?” National Institute Economic Review 211: 81–90.
Iizetzki, E. (2007). “Rent-Seeking Distortions and Fiscal Procyclicality.” Forthcoming, in Journal of Development Economics
Ilzetzki, E. and C. Végh (2008). “Procyclical Fiscal Policy in Developing Countries: Truth or Fiction?” NBER Working Paper 14191.
Ilzetzki, E., E. Mendoza, and C. Végh (2010). “How Big (Small?) Are Fiscal Multipliers?” NBER Working Paper 16479.
Jiménez, G., S. Ongena, J. Peydrô, and J. Saurina (2008). “Hazardous Times for Monetary Policy: What do Twenty-Three Million Bank Loans Say about the Effects of Monetary Policy on Credit Risk-Taking?” Unpublished manuscript.
Kaminsky, G., C. Reinhart, and C. Végh (2004). “When It Rains, It Pours: Procyclical Capital Flows and Macroeconomic Policies.” NBER Macroeconomics Annual.
Laeven, Luc and Fabian Valencia (2008). “Systemic Banking Crises: A New Database.” IMF Working Paper 08/224. Washington: International Monetary Fund.
Lane, P. (2003). “The Cyclical Behavior of Fiscal Policy: Evidence from the OECD.” Journal of Public Economics 87: 2661–2675.
Medas,P. and G. Zakharova (2009). “A Primer on Fiscal Analysis in Oil-Producing Countries.” IMF Working Paper: 09/56.
Ramey, V. (2009). “Identifying Government Spending Shocks: It’s All in the Timing.” NBER Working Paper 15464.
Reinhart, C. and K. Rogoff (2009). This Time Is Different: Eight Centuries of Financial Folly. Princeton: Princeton University Press.
Romer, C. and D. Romer (2010). “The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks.” American Economic Review, 100(3).
Shleifer, A. and R. Vishny (2010). “Fire Sales in Finance and Macroeconomics.” NBER Working Paper 16642.
Suescun, R. (2008). “Size and Effectiveness of Automatic Fiscal Stabilizers in Latin America.” In G. Perry and L. Servén (eds.), Fiscal policy, stabilization and growth. The World Bank.
Svensson, L. (2010). “Inflation Targeting.” NBER Working Paper 16654.
Talvi, E. and C. Végh (2005). “Tax Base Variability and Pro-cyclical Fiscal Policy in Developing Countries.” Journal of Development Economics 78: 156–190.
Tornell, A. and P. Lane (1999). “The Voracity Effect.” American Economic Review 89: 22–46.
Editor information
Editors and Affiliations
Copyright information
© 2012 Dubai Economic Council
About this chapter
Cite this chapter
Sadik, A.T.A., Servén, L. (2012). The Global Crisis: Old and New Lessons for Macroeconomic Policy. In: Sadik, A.T.A., Elbadawi, I.A. (eds) The Global Economic Crisis and Consequences for Development Strategy in Dubai. The Economics of the Middle East. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137001115_4
Download citation
DOI: https://doi.org/10.1057/9781137001115_4
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-349-35144-2
Online ISBN: 978-1-137-00111-5
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)