Advertisement

Introduction

  • Laurent Ferrara
  • Ignacio Hernando
  • Daniela Marconi
Chapter
Part of the Financial and Monetary Policy Studies book series (FMPS, volume 46)

Abstract

In the years 2008–09, following the Global Financial Crisis (hereafter the GFC), the global economy experienced its worst economic recession since the Great Depression. Some ten years later, this book examines the macroeconomic dynamics of the global economy in the aftermath of the GFC. The book is split into four sections. First, we look at the supply side of the economy and how potential growth is likely to have been affected by the GFC, against a backdrop of a long-run decline in productivity and rising inequalities. Second, we examine the impact of the GFC on demand, focusing on trends in global trade, household consumption and business investment. Third, we discuss how monetary policy reactions after the GFC were rapid and large enough to sustain the global economy and the international monetary system, but also take a closer look at the challenges ahead for central bankers, notably low inflation regimes, heightened uncertainties and low natural interest rates. The final section points out some stylized facts on the external sector variables of countries such as capital flows, exchange rates and cross-border monetary policy spillovers.

References

  1. Aizenman J, Binici M, Hutchison M (2014) The transmission of federal reserve tapering news to emerging financial markets. NBER working paper, No. 19980Google Scholar
  2. Aizenman J, Chinn MD, Ito H (2015) Monetary policy spillovers and the trilemma in the new normal: periphery country sensitivity to core country conditions, NBER working paper No. 21128Google Scholar
  3. Bernanke B (2011) The effects of the Great Recession on central bank doctrine and practice. In: Speech at the Federal Reserve Bank of Boston 56th Economic Conference, Boston, Massachusetts, Oct 2011Google Scholar
  4. Brynjolfsson E, McAfee A, Spence M (2014) New world order: labor, capital, and ideas in the power law economy, Foreign Affairs, July–AugustGoogle Scholar
  5. Caruana J, Filardo A, Hofmann B (2014) Post-crisis monetary policy: balance of risks. In: Vallés J (ed) Monetary policy after the great recession. FUNCAS, MadridGoogle Scholar
  6. Cynamon BZ, Fazzari SM (2016) Inequality, the great recession and slow recovery. Camb J Econ 40(2):373–399CrossRefGoogle Scholar
  7. Coeuré B (2017) The international dimension of the ECB’s asset purchase programme. Speech at the foreign exchange contact group meeting, 11 July 2017Google Scholar
  8. Eichengreen B, Gupta P (2015) Tapering talk: the impact of expectations of reduced Federal Reserve security purchases on emerging markets. Emerg Markets Rev 25(C):1–15CrossRefGoogle Scholar
  9. Forbes K (2015) Much ado about something important: how do exchange rate movements affect inflation? Speech given at the 47th Money, Macro and finance research group annual conference, Cardiff, Sept 2015Google Scholar
  10. Gordon RJ (2014) The Demise of U.S. Economic growth: restatement, rebuttal, and reflections, NBER working paper, No. 19895Google Scholar
  11. Holston K, Laubach T, Williams JC (2016) Measuring the natural rate of interest: international trends and determinants. J Int EconGoogle Scholar
  12. IMF (2016) World economic outlook, Apr 2016Google Scholar
  13. IMF (2017) World economic outlook, Oct 2017Google Scholar
  14. Jaumotte F, Lall S, Papageorgiou C (2013) Rising income inequality: technology, or trade and financial globalization? IMF Econ Rev 61(2):272–309CrossRefGoogle Scholar
  15. Mokyr J (2013) Technology then and now: why the technopessimists are wrong, Presentation delivered at the Federal Reserve Bank of Atlanta Public Affairs Forum, JulyGoogle Scholar
  16. Obstfeld M, Shambaugh J, Taylor A (2005) The trilemma in history: tradeoffs among exchange rates, monetary policies and capital mobility. Rev Econ Stat 87(3):423–438CrossRefGoogle Scholar
  17. OECD (2014) Perspectives on global development 2014. In: Boosting productivity to meet the middle-income challenge. OECD PublishingGoogle Scholar
  18. Rey, H. (2016) International channels of transmission of monetary policy and the Mundellian trilemma. NBER working paper, No. 21852Google Scholar
  19. Visco I (2015) For the times they are a changin’ Lecture by Mr. Ignazio Visco, Governor of the Bank of Italy, at the London School of Economics Institute of Global Affairs and London School of Economics Student’s Union. Italian Society, London, 11 Nov 2015Google Scholar

Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  • Laurent Ferrara
    • 1
  • Ignacio Hernando
    • 2
  • Daniela Marconi
    • 3
  1. 1.International Macro DivisionBanque de FranceParisFrance
  2. 2.ADG International Affairs, International Economics DivisionBanco de EspañaMadridSpain
  3. 3.Bank of ItalyDirectorate General for Economics, Statistics and Research, International Relations and Economics DirectorateRomeItaly

Personalised recommendations