CFDP 1944

The Financial Crisis and Macroeconomic Activity: 2008-2013


Publication Date: March 2014

Revision Date: February 2015

Pages: 44


This paper provides estimates of the effects of the fall in financial and housing wealth in 2008-2009 on overall macroeconomic activity. These effects are large and account for a large fraction of the slowdown in activity. Much of the 2008-2009 recession is estimated to be simply standard wealth effects at work.


Financial crisis, Wealth effects

JEL Classification Codes:  E32, E37