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Author/Editor:
. Nujin Suphaphiphat ; Yu Shi
Publication Date:
December 9, 2022
Electronic Access:
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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Summary:
This paper documents the existence of medium-to-long term output losses following large crises using panel data that cover 192 countries from 1970 to 2015 and shows that the magnitudes of economic scarring depend on the nature of the shock, economic activity, and pre-crisis conditions. It also provides a thorough review of potential channels that can lead to scarring and presents novel empirical evidence on the significance of supply-side channels using cross-country sectoral-level data. Finally, the paper discusses policy implications based on the empirical findings.
Series:
Working Paper No. 2022/248
Frequency:
regular
Publication Date:
December 9, 2022
ISBN/ISSN:
9798400227257/1018-5941
Stock No:
WPIEA2022248
Pages:
21
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Economic Scarring: Channels and Policy Implications – International Monetary Fund
