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What Governments Can Do to Support their Economies: The Case for a Strategic Econsystem
Author(s) -
Meyer Henning,
Klasen Andreas
Publication year - 2013
Publication title -
global policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.602
H-Index - 33
eISSN - 1758-5899
pISSN - 1758-5880
DOI - 10.1111/1758-5899.12060
Subject(s) - recession , economics , currency , unemployment , great depression , world economy , financial crisis , economy , sustainability , great recession , economic policy , macroeconomics , political science , keynesian economics , ecology , biology , law
More than half a decade after the outbreak of the greatest economic crisis since the Great Depression, the world economy is still facing serious difficulties. Much more than during a ‘normal’ recession, the Great Recession of recent years has uncovered serious structural problems in the world economy and has brought about levels of unemployment unprecedented in modern times (Elsby et al. [Elsby, M. W., 2010]). It first became clear that the financial sector had become in effect self‐referential and too much removed from its traditional role of allocating finance throughout the whole economy (Menkhoff and Meyer, [Menkhoff, L., 2010]). Following this, the structural weaknesses of the Euro were exposed leading to serious questions about the long‐term sustainability of the most ambitious currency union ever attempted.