Albonico, Alice; Tirelli, Patrizio; Paccagnini, Alessia - 2016
This paper reconsiders the role of macroeconomic shocks and policies in determining the Great Recession and the … subsequent recovery in the US. The Great Recession was mainly caused by a large demand shock and by the ZLB on the interest rate … increase in expenditure-to- GDP ratios was apparently determined by the adverse non-policy shocks that caused the recession. …