The permanent scars of recession

Chris Giles was on excellent form in this article in the Financial Times considering the economic fall-out from the recession. He looks at the causes of hysteresis effects arising from the recession - including a long term fall in employment rates, reduction in the size of the capital stock, a weaker pace of innovation and reductions in productivity.

“The emerging consensus - for the advanced world at least - is that they will be deep and long-lived. In its recent World Economic Outlook, the International Monetary Fund examined 88 historical banking crises between 1970 and 2002 and found, on average, that countries do not earn back all the lost ground after the recession slips into people’s memories. In its database, it found that seven years after a crisis, output had fallen by 10 per cent compared with the pre-crisis path. Economic growth generally returned to the pre-crisis rate, but the loss of output seems permanent.”

Economics Explained, by Evan [12 Feb 2012]
Unit 2 Macro: China’s Trade Engine is Spluttering [10 Feb 2012]
Unit 2 Macro: Growth and Development - Some Indicators [30 Jan 2012]
Unit 2 Macro: Focus on China - Changing Economic Structure [26 Jan 2012]
Unit 4 Macro: Money, Debt and the New World Order [22 Jan 2012]
France and Flexible Employment [22 Jan 2012]
Unit 2 Macro: Living below the Breadline [19 Jan 2012]
Unit 4 Macro: Economics of Fiscal Deficit Reduction [12 Jan 2012]
Unit 2 Macro: Factors Driving Business Investment [10 Jan 2012]
Unit 2 Macro: A Jobs Boost for the US Economy [8 Jan 2012]
Unit 2 Macro: Revision Quiz on Economics of Unemployment [5 Jan 2012]
Unit 4 Macro: Video Resources on Unemployment [3 Jan 2012]
2011 in Review - The US Economy [27 Dec 2011]
Unit 2 Macro: The UK Housing Market in 2011 [26 Dec 2011]
Unit 2 Macro: Brazil Overtakes UK in Economic Size [26 Dec 2011]
Unit 4 Macro: Human Capital and Economic Growth [23 Dec 2011]
Unit 4 Macro: The Rise in Self Employment [17 Dec 2011]
Unit 2 Macro: Long Term Unemployment - A Human Story [15 Dec 2011]
Unit 4 Macro: Does UK Manufacturing have a Future? [30 Nov 2011]
Unit 2 Macro: Will a Youth Jobs Subsidy Work? [30 Nov 2011]
Where is the UK Economy? National Output [22 Nov 2011]
Unit 2 Macro: A Prezi on Unemployment Policies [16 Nov 2011]
AS Macro: The State of British Business [13 Nov 2011]
Unit 4 Macro: America’s hour-glass economy [9 Nov 2011]
Unit 2 Macro: Video Clips on Unemployment [6 Nov 2011]
Unit 3 Micro: Impulses to Change Management Models [5 Nov 2011]
Unit 4 Macro: Unemployment Chart Resource Download [29 Oct 2011]
Unit 2 Macro: Positive and Negative Multiplier Effects [14 Oct 2011]
UK Unemployment in October 2011 [12 Oct 2011]
Unit 4 Macro: Unit Labour Costs and Inflation [12 Oct 2011]
Unit 2 Macro: UK suffers a weak recovery [12 Oct 2011]
Why Is Macroeconomics Such A Mess? [11 Oct 2011]
NMW: Classical real-wage unemployment [3 Oct 2011]
Unit 4 Macro: Greek Economy at Default’s Door [25 Sep 2011]
Unit 4 Macro: IMF Flags up Risks of Double Dip [20 Sep 2011]
Study Note - Macroeconomic policy objectives [16 Sep 2011]
Study Note - What is Macroeconomics? [13 Sep 2011]
Unit 2 Macro: Income and Wealth in the UK [12 Sep 2011]
UK Macro: Risks of a Double Dip Recession [12 Sep 2011]
Mixing with the Nobel Economists [4 Sep 2011]
Unit 4 Macro: GDP per person since the credit crunch [19 Aug 2011]
“We need to make more stuff, using the same number of people…” [16 Jul 2011]
What might happen on August 2nd? [12 Jul 2011]
Unit 4 Macro: Dangers of High Inflation [11 Jul 2011]
Unit 2 Macro: Reducing Unemployment after a Recession [11 Jul 2011]
AQA ECON4 Context [20 Jun 2011]
Structural unemployment in the UK - insights for 2011 [13 Jun 2011]
A2 Macro: Consumer Spending [30 May 2011]
Macro Revision: Putting Things in Context [25 May 2011]
AS Macro Key Term: Supply-Side Policies [25 May 2011]
AQA Macro: Remember to revise inflation [25 May 2011]
AS Macro Key Term: Demand Pull Inflation [24 May 2011]
AS Macro Key Term: Trend Growth [23 May 2011]
AS Macro Key Term: Economic Recovery [23 May 2011]
AS Macro Key Term: Recession [23 May 2011]
AS Macro Key Term: The Output Gap [23 May 2011]
Revision notes on unemployment [22 May 2011]
A2 Micro: The Importance of Profit [19 May 2011]
A2 Micro: Innovation and Economic Policies [18 May 2011]
AS economics: Using the cost-benefit principle [18 May 2011]
UK Economy Update: What Mervyn Said [11 May 2011]
Interest Rates Held at 0.5% once again [5 May 2011]
A2 Micro: Innovation in Markets [4 May 2011]
Macroeconomics revision - measuring Consumer Confidence [4 May 2011]
EU Enlargement - Evaluating the Impact [30 Apr 2011]
AS and A2 Macro Revision: Keynesian Economics [28 Apr 2011]
A2 Micro: EU Aviation - State Aid and State Ownership [28 Apr 2011]
Australia Booming Ahead [21 Apr 2011]
OCR F585 June 2011: A Brain Drain from Spain? [13 Apr 2011]
In Praise of Farmers and Farming [13 Apr 2011]
AS Macro Key Term: Frictional Unemployment [11 Apr 2011]
A2 Macro: Back to Roubini - a Year On! [11 Apr 2011]
AS Macro Key Term: Seasonal Unemployment [10 Apr 2011]
AS Micro: Prices for New and Second Hand Cars [9 Apr 2011]
AS Macro Key Term: Double-Dip Recession [8 Apr 2011]
AS Macro Key Term: Jobless Recovery [8 Apr 2011]
UK Minimum Wage rises by 2.5% in October 2011 [8 Apr 2011]
ECB breaks rank and raises interest rates [7 Apr 2011]
AS Macro Key Term: Under-employment [7 Apr 2011]
AS Macro Key Term: Economic Structure [6 Apr 2011]
AS Macro Key Term: Fiscal Austerity [6 Apr 2011]
Focus on Poland [5 Apr 2011]
Tracking the effects of the recession on GDP [5 Apr 2011]
AS Macro Key Term: Expansionary Monetary Policy [4 Apr 2011]
Timetric: Unemployment in the US Economy [1 Apr 2011]
The Scale of Remittances [1 Apr 2011]
Structural unemployment - Top 10 Dying Industries [28 Mar 2011]
The New North - Population Shift [23 Mar 2011]
Keeping Track of UK Macro Objectives [18 Mar 2011]
Focus on Spain [16 Mar 2011]
Timetric: Unemployment Rates for Selected Countries [12 Mar 2011]
Timetric: UK Consumption as a Share of GDP [12 Mar 2011]
AS Macro Revision: Investment Spending [12 Mar 2011]
Timetric: Part Time Working in the UK [11 Mar 2011]
Dambisa Moyo - How the West was Lost [11 Mar 2011]
Timetric: Total Employment in the UK Economy [10 Mar 2011]
Ireland - Mass Unemployment and Shrinking GDP [10 Mar 2011]
Timetric: Public Sector Employment [9 Mar 2011]
Timetric: Income Tax and VAT Revenues [8 Mar 2011]
Timetric: Research and Development in the UK [7 Mar 2011]

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