{"id":1229,"date":"2011-05-25T18:13:53","date_gmt":"2011-05-25T16:13:53","guid":{"rendered":"http:\/\/www.poleconomix.gr\/portal\/?p=1229"},"modified":"2011-05-25T21:10:53","modified_gmt":"2011-05-25T19:10:53","slug":"the-impact-of-the-global-financial-crisis-on-low-income-countries","status":"publish","type":"post","link":"https:\/\/www.poleconomix.gr\/portal\/the-impact-of-the-global-financial-crisis-on-low-income-countries\/","title":{"rendered":"The impact of the global financial crisis on low-income countries"},"content":{"rendered":"

Berg, Andrew<\/a>\u00a0& Spatafora, Nikola<\/a>.<\/p>\n

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What effect did the global financial crisis have on low-income countries? This column examines data from the last forty years to help place 2007\u20132009 in perspective. It finds that the global crisis was largely transmitted to low-income countries through external demand shocks that were not tremendously large relative to historical volatility. Such demand shocks are usually bad for growth in the short to medium run, but they may not have damaged poor economies’ long-run growth prospects.<\/p>\n<\/div>\n

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The existing research on the impact of the global financial crisis has tended to focus mainly on advanced countries and emerging markets (see for instance, Berkmen et al. 2009; Blanchard et al. 2010; IMF 2010; Lane and Milesi-Ferretti 2010; and Rose and Spiegel 2009). But the global financial crisis that started in 2007 raises several important questions for low-income countries (LICs).<\/p>\n