A New Reading of the Crisis and the Dilemmas of Economic Policy

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Series Details No.124
Publication Date 21/09/2011
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In order to understand the turbulence that has rocked the international economy since August 2011, it is necessary to re-diagnose the crisis. It explains that the economic growth posted by most advanced countries (excluding Spain) in the wake of the recession of 2008-2010 was in part just a mirage, fuelled by government stimulus measures that are difficult to maintain. The paper also examines the limited economic policy options that governments have.

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