Why does activity recover faster after a crisis in the United States than in the euro zone?
When we look at the 2000-2001 recession and the 2008-2009 recession, we see that production normalises faster in the United States than in the euro zone. What are the possible explanations for the fact that activity recover s faster in the United States than in the euro zone? At first sight, we can think of: A more stimulatory fiscal or monetary policy in the United States; A faster employment adjustment in the United States, which restores corporate earnings and investment more rapidly; A smaller contraction in bank credit in the United States, or companies' ability to raise financing in financial markets; A faster recovery in household confidence, consumption and housing purchases. The explanations that seem relevant are: More stimulatory economic policies in the United States; A faster upswing in corporate investment in the United States, combined with a faster employment adjustment; A faster upturn in household housing investment, combined with a faster improvement in confidence.