IDEAS home Printed from
MyIDEAS: Login to save this article or follow this journal

The road to global economic recovery, 2009

  • Paul Krugman


These document contains three parts: the first part focuses on the lessons that have been learnt from the 2007-2009 crisis and how economic authorities handled the shock suffered in most variables. The conclusion is that Government intervention through fiscal policy is the only wayto offset the weakness of households and firms. Monetary policy on the other hand can help, but it has limits in its ability to become a real source of economic growth. The second part makes a short review on current economic affairs including a discussion on whether the crisis has ended.Krugman accepts that the crisis is over, but he believes that we are still far from an economic expansion. Finally, the article analyzes the economic situation of Latin America and Colombia in particular. It points out that this crisis did not start in our countries and it did not happen because of bad economic policies as it used to happen in previous crisis in emerging economies. The crisis had an impact on these countries because of its effects on trade, commodities and capital flows due to the lower economic activity in developed countries. However we have evidence of strengthin developing countries.Este documento se enfoca inicialmente en las lecciones aprendidas a partir de los sucesos que provocaron la crisis de la economía mundial de los años 2008-2009 y la forma como se ha manejado por parte de las autoridades económicas en los Estados Unidos y a nivel mundial, planteandola importancia de la intervención del Gobierno y los obstáculos de la política monetaria como fuentes de crecimiento y recuperación en este período. La segunda parte interpreta los acontecimientos actuales y discute la tesis de que Krugman acepta que ya ha habido una salida a lacrisis ocurrida en el verano de 2009, pero todavía estamos lejos de una economía en expansión. Por último el artículo se ocupa de la situación de América Latina y Colombia en particular y señala que esta crisis no surgió de malos manejos económicos sino de los efectos que tuvo sobre el comercio, las materias primas y los flujos de capitales la reducción en la actividad económica en los países del primer mundo. Por el contrario se evidencia una fortaleza en las economías emergentes.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no


Volume (Year): (2009)
Issue (Month): (November)

in new window

Handle: RePEc:col:000382:007119
Contact details of provider:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:col:000382:007119. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marcela Villegas)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.