Growth Patterns after the Crisis: This Time is not Different

The world economy is recovering from the international financial crisis with a considerable degree of heterogeneity across countries. In threshold countries, recovery has been proceeding rapidly, whereas it has been very slow in most industrialized countries. Nils Jannsen and Joachim Scheide provide an explanation for this: in countries where the recession was associated with a crisis in the banking or housing sectors, the economy is recovering very slowly, whereas in countries where the recession was not associated with a crisis in these sectors, the economy is recovering more rapidly.