Europe

Regional Economic Outlook, October 2008, Euope: Dealing with Shocks

Publication Date:

October 28, 2008

Electronic Access:

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Summary:

The confluence of multiple adverse shocks—the turbulence in financial markets, high commodity prices, and the appreciation of the exchange rate—have depressed growth in Europe. At the same time commodity prices increases have boosted headline inflation. While containing inflation remains a major concern, supporting the recovery is likely to gain policy prominence in the advanced economies. Looking forward, improvements in prudential regulation could mitigate the procyclicality of credit standards, which should help reduce macroeconomic volatility. Cross-border labor flows are generally seen to have beneficial macroeconomic effects.

Series:

Europe

Subject:

Commodity prices Credit Inflation Labor Labor mobility Money Oil prices Prices

Notes:

Full text also available in Russian