Abstract
The financial crisis has affected the real economy in stages yet nevertheless at an unexpected rate and with all regions being affected simultaneously. It advanced almost independently of the regions’ exposure to the actual initial causes, among them the subprime crisis, innovative financial products, dubious microeconomic incentives, inefficient regulation and macroeconomic imbalances. The following analysis asks how national economic structures can be made more resilient to a shock (be it a financial crisis or another turbulence) and how economic policy can act in order to stabilise the economy before and after such a shock.
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Edited version of a lecture presented at the Annual Meeting of the Austrian Central Bank 2009 under the title “How can a small open economy like Austria protect itself against large international economic shocks?” The author wishes to thank Klaus Friesenbichler, Angela Köppl, Sonja Schneeweiß, Peter Szopo, Gunther Tichy, Ewald Walterskirchen, Yvonne Wolfmayr and Andreas Wörgötter for valuable comments and Dagmar Guttmann for research assistance.
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Aiginger, K. Strengthening the resilience of an economy. Intereconomics 44, 309–316 (2009). https://doi.org/10.1007/s10272-009-0308-9
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DOI: https://doi.org/10.1007/s10272-009-0308-9