Details

Autor(en) / Beteiligte

• Kim, Yeon Joon
• Lee, Joo Young

Titel

Sluggish Recovery from the Financial Crisis: Crowding-out Effect and Contagion

Ist Teil von

• Global Economic Review, 2014, 43(4), , pp.408-428

Ort / Verlag

Abingdon: Routledge

Erscheinungsjahr

2014

Quelle

EBSCOhost Business Source Ultimate

Beschreibungen/Notizen

• The stimulus plans by the US Government after the financial crisis in 2008 may decrease private investment by means of a crowding-out effect. The US Federal Reserve utilized quantitative easing policies to maintain the interest rate as low as possible to minimize crowding-out. The 2008 financial crisis also affects other economies through contagion effects. This paper investigates the existence of the crowding-out effect and contagion effect after the crisis using Temin and Voth's models. The empirical results from vector autoregession show that there is a crowding-out effect in the US economy as well as a contagion effect of the crisis on the Korean and Japanese economies.