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Crisis And Economic Growth In The Eu

Author

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  • Péter Halmai

    () (Faculty of Economics University of Pannonia Veszprém, Hungary)

  • Viktória Vásáry

    () (Faculty of Economics University of Pannonia Veszprém, Hungary)

Abstract

The dramatic decline in the actual output of the European economy is considered to be more than a cyclical discrepancy from the potential output. Both the level and the growth rate of the potential output show an unfavourable development. It is an important task of economic research to identify the channels through which the financial crisis might have an impact on the level and growth rate of the potential output. The European economic policies face major challenges while trying to find those effective answers which contribute to the mitigation of the potential output losses. The impacts of the crises on the potential growth need to be reviewed in regard to potential growth factors (labour utilization, capital accumulation and total factor productivity). It is essential to reveal the transmission channels and the experiences gained during previous financial and economic crises. The paper is based on broad mid-term quantitative analyses using the production function approach. In the end alternative long-term scenarios are analyzed.

Suggested Citation

  • Péter Halmai & Viktória Vásáry, 2011. "Crisis And Economic Growth In The Eu," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 58, pages 411-431, november.
  • Handle: RePEc:aic:journl:y:2011:v:58:p:411-431
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    References listed on IDEAS

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    1. Valerie Cerra & Sweta Chaman Saxena, 2008. "Growth Dynamics: The Myth of Economic Recovery," American Economic Review, American Economic Association, vol. 98(1), pages 439-457, March.
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    Citations

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    Cited by:

    1. Beáta Farkas, 2012. "The Impact of the Global Economic Crisis in the Old and New Cohesion Member States of the European Union," Public Finance Quarterly, State Audit Office of Hungary, vol. 57(1), pages 53-70.

    More about this item

    Keywords

    economic crisis; potential economic growth; production function approach;

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • F15 - International Economics - - Trade - - - Economic Integration
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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