The Financial Crisis and Macroeconomic Activity: 2008-2013
45 Pages Posted: 29 Mar 2014 Last revised: 18 Feb 2015
Date Written: February 17, 2015
This paper provides estimates of the effects of the fall in financial and housing wealth in 2008-2009 on overall macroeconomic activity. These effects are large and account for a large fraction of the slowdown in activity. Much of the 2008-2009 recession is estimated to be simply standard wealth effects at work.
Keywords: Financial crisis, Wealth effects
JEL Classification: E32, E37
Suggested Citation: Suggested Citation