NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Two Tales of Adjustment: East Asian Lessons for European Growth

Anusha Chari, Peter Blair Henry

NBER Working Paper No. 19840
Issued in January 2014
NBER Program(s):   DEV   EFG   IFM

Paths into the Asian Crisis of 1997-98 and the recent global financial crisis were similar, but the roads out could not be more different. Common wisdom has it that on impact Asia endured fiscal austerity imposed by the IMF whereas the IMF recommended stimulus in the case of the advanced nations at the epicenter of the crisis in 2008-09. While the IMF did recommend different policies to begin with, the fiscal adjustment in Asia was far more modest than is commonly known and the switch from stimulus to austerity in Europe was quite abrupt. The difference in fiscal stance helps explain the difference in the post-crisis paths of output and employment in the two regions.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Information about Free Papers

You should expect a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w19840

Users who downloaded this paper also downloaded these:
Nakamura, Steinsson, and Liu w19893 Are Chinese Growth and Inflation Too Smooth? Evidence from Engel Curves
Reinhart and Rogoff w19823 Recovery from Financial Crises: Evidence from 100 Episodes
Acemoglu, Autor, Dorn, Hanson, and Price w19837 Return of the Solow Paradox? IT, Productivity, and Employment in U.S. Manufacturing
Bussiere, Cheng, Chinn, and Lisack w19791 For a Few Dollars More: Reserves and Growth in Times of Crises
Fernald and Jones w19830 The Future of U.S. Economic Growth
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us