Recessions always leave traces

Even if their causes disappear, recessions always leave trace s . This is important to keep in mind today. Recessions give rise to lasting effects because: Some c ompanies are weakened and other s disappear; The government is highly indebted or there is strong money creation; Capital accumulation is reduced; The structure of household demand and therefore the sectoral structure of the economy changes; Risk aversion remains persistently higher; The rise in unemployment leads to a loss of human capital and to social tensions; The young face lasting effects due to their problems entering the labour market; Economic policies (regulations, public spending priorities, redistribution) are modified; The concerns of the population (climate, sovereignty, corporate governance) become different. We illustrate all these points with the case of the euro zone.