>Special Report: (ECONOMIC RESEARCH)

Magnitude of the declines in global growth during recessions: What explanations?

We will study the scale of the shortfalls in global growth during recessions, and we try to understand why this shortfall is so substantial during the current crisis.

What explanations can we think of?
− the greater correlation of economies due to greater global trade;

− the higher level of indebtedness, which requires more substantial deleveraging during recessions, especially as the indebtedness is linked to asset prices;

− the inefficiency of monetary policies, due to the high level of indebtedness;

− the transmission of the crisis via finance.

To see full report: SPECIAL REPORT