Economic Scarring: Channels and Policy Implications

Suphaphiphat, Nujin; Yu, Shuang

doi:10.5089/9798400227257.001

Cited by 3 publications

(1 citation statement)

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“…At its onset, the Covid pandemic was widely expected to have a persistent negative impact on output, particularly in Emerging Markets (EMs). Experience suggested that large economic shocks are associated with economic "scarring" -persistent or long-term damage to economic activity (Barrett and others, 2021;Suphaphiphat and Shi, 2022). In addition, earlier work by Aguiar and Gopinath (2007) find that shocks to GDP have a more persistent effect on trend growth in EMs than in Advanced Economies (Aes).…”

Section: Introductionmentioning

confidence: 99%

Revisiting Covid Scarring in Emerging Markets

Jackson

2023

IMF Working Papers

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Section: Introductionmentioning

confidence: 99%

Revisiting Covid Scarring in Emerging Markets

Jackson

2023

IMF Working Papers

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F: International and National Economies

2022

World Banking Abstracts

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The study investigates whether the variation in religious festivals' features and timing affect long-run economic development in Mexico. Specifically, the study examines whether "agriculturally coinciding" festivals (those coinciding with peak planting or harvest months) influence the long-run economic development of localities. Findings indicate that overall, festivals that coincide with agricultural seasons negatively influence both household income and development outcomes. These negative consequences can be due to persistently lower agricultural productivity, which impedes the structural transformation of the economy from agriculture to modern sectors. However, these festivals may persist as they lead to higher religiosity and social capital. (7 figures, 4 tables, references) 1179/39

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6. Escaping Fragmentation and Secular Stagnation

Padoan

2023

Financing Investment in Times of High Public Debt

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The EU has been impacted by multiple crises due to economic and geopolitical drivers. These crises have left scarring effects and may lead to fragmentation with serious permanent consequences. This takes place against the background of secular stagnation which makes the policy response more difficult. The main response strategy is the NGEU mechanism, based on public investment and structural reforms. It should deliver sustainable growth and structural change that allows for exit from the multiple crises―pandemic, geopolitical, energy, inflationary―and puts the European Union on a path of twin transformation (digital and green), reverting the drift towards secular stagnation. NGEU is an effective policy tool, provided it acts through policy packages of public investment and structural reforms and allows for time to complete the reform cycle. Its effectiveness must be seen in the context of a new policy mix fit to address the multiple-crises framework.

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Economic Scarring: Channels and Policy Implications

Cited by 3 publications

References 32 publications

Revisiting Covid Scarring in Emerging Markets

Revisiting Covid Scarring in Emerging Markets

F: International and National Economies

6. Escaping Fragmentation and Secular Stagnation

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