Annals of the Fondazione Luigi Einaudi

An Interdisciplinary Journal of Economics, History and Political Science

The Annals is a forum for the free exchange of ideas
among scholars working in the field of social sciences
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
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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.