Report
Patrick Artus

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.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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