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Volume LI 2 - 2017

Economic Policies during the 'Great Recession' in the United States and the European Union: A Comparative and Critical View

Vittorio Valli, pp. 159-181
Abstract
The paper analyzes the main structural features and the different responses to the recent ‘great recession’ in the United States and the European Union.
In the crucial years 2008-2010 the United States used a combination of expansionary monetary and fiscal Keynesian policies and a rather vigorous industrial and innovation policy. The European Union, constrained by its austerity bias and by strict EU rules, followed a fully anti-Keynesian policy and this contributed to a longer and deeper recession, particularly in the most financially vulnerable countries. However, in both areas the recession had been also fuelled by long-standing problems, which were exacerbated by weak institutional features and economic policy errors.