Government responses to the great recession: A comparative perspective

In this chapter Agnar Freyr Helgason focuses on the statistical profiles of government policies and outcomes after the crisis hit. The Great Recession is placed in the context of longer-term developments of financial crises. The economic growth context is outlined, as are current account balances and debt levels leading up to the crisis. The chapter also focuses on what fiscal policy measures affecting population welfare (automatic stabilizers versus discretionary measures) governments put in place. The extent of stimulus, austerity, taxation and transfers, and other social protection efforts are considered in turn. These three chapters making up Part I, as well as the Introduction, set the scene for the more detailed country case studies in Part II, by providing understanding of governments’ options and comparative perspectives and showing how populations were differentially affected.