{
  "title": "International Evidence on Recovery from Recessions",
  "publication": "IMF Working Papers, August 1, 2009",
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  "summary": "Although negative shocks have persistent effects on output on average, this paper shows that macroeconomic policies and the structure of the economy can influence the speed of recovery and mitigate the persistence of the shock.",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- Negative shocks have persistent effects on output on average.\n- Macroeconomic policies and the structure of the economy can influence the speed of recovery and mitigate the persistence of the shock.\n- Monetary stimulus, fiscal stimulus, and foreign aid can spur a rebound, with impacts that are asymmetrically stronger in recovery years than in nonrecovery years.\n- Real depreciation and the exchange rate regime have asymmetric growth effects in a recovery year relative to other years of expansion.\n- Recoveries are more sluggish in open economies, partly because fiscal policy is less effective than in closed economies."
    },
    {
      "heading": "Policy-relevant implications",
      "content": "- Deploy monetary stimulus to support quicker rebound during recovery years, given its asymmetric stronger impact in recovery periods.\n- Use fiscal stimulus during recoveries, recognizing fiscal measures have stronger effects in closed economies and are less effective in open economies.\n- Consider foreign aid as a tool to spur rebound in recovery years due to its asymmetric positive impact.\n- Account for exchange rate dynamics: real depreciation and the choice of exchange rate regime matter more for growth outcomes during recovery years than in other expansion years."
    },
    {
      "heading": "Subject classifications and keywords",
      "content": "- Subject: Banking crises, Capital account, Currency crises, Exchange rate arrangements, Fiscal policy\n- Keywords: country characteristic, exchange rate, macro policy contraction, monetary policy, WP\n\n---\n\n Content in this bundle\n\n- wp09183 - References\n  - wp09183 - References (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp09183 - References (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/international-evidence-on-recovery-from-recessions-23234"
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    "[Markdown version](/en/publications/wp/issues/2016/12/31/international-evidence-on-recovery-from-recessions-23234/index.md)",
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    "Authors: Valerie Cerra, Sweta Chaman Saxena, Ugo Panizza",
    "Published: August 1, 2009",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451873306.001",
    "Negative shocks have persistent effects on output on average.",
    "Macroeconomic policies and the structure of the economy can influence the speed of recovery and mitigate the persistence of the shock.",
    "Monetary stimulus, fiscal stimulus, and foreign aid can spur a rebound, with impacts that are asymmetrically stronger in recovery years than in nonrecovery years.",
    "Real depreciation and the exchange rate regime have asymmetric growth effects in a recovery year relative to other years of expansion.",
    "Recoveries are more sluggish in open economies, partly because fiscal policy is less effective than in closed economies.",
    "Deploy monetary stimulus to support quicker rebound during recovery years, given its asymmetric stronger impact in recovery periods.",
    "Use fiscal stimulus during recoveries, recognizing fiscal measures have stronger effects in closed economies and are less effective in open economies.",
    "Consider foreign aid as a tool to spur rebound in recovery years due to its asymmetric positive impact.",
    "Account for exchange rate dynamics: real depreciation and the choice of exchange rate regime matter more for growth outcomes during recovery years than in other expansion years.",
    "Subject: Banking crises, Capital account, Currency crises, Exchange rate arrangements, Fiscal policy",
    "Keywords: country characteristic, exchange rate, macro policy contraction, monetary policy, WP",
    "**_wp09183 - References**"
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