Does anyone have any good recommended articles/reads about why exactly the US recovered quite spectacularly (GDP wise) after the ‘08 financial crisis, while the EU stagnated so heavily?
So while US broke the glass and did our bail-outs, the EU tried to extend & pretend for years longer. Kind of the Japan bubble response.
The rest can probably be explained by 1)regulatory differences causing huge disparity in industries driving growth where you had substantially all the growth coming from tech in US and 2) demographic differences where Europe is older and aging more rapidly than US, so you have a higher budget burden.
And also labor laws and the red tape in company regulations.
US did bailouts & stimulus, and now compared to COVID arguably far too little stimulus for partisan reasons. Meanwhile the EU was implementing austerity due partially to Germans incessant inflation fears.
Tory Austerity has absolutely decimated the UK. George Osbourne should be pilloried as being the main architect of its demise. Ideology is a pernicious disease.
For better or worse, having a GOP president during COVID lead to more stimulus as the Dems will play along and just add some pro labor addendums.
Having Obama in the WH he mostly dealt with nonstop GOP attempts to block any fiscal aid. Not to mention the huge focus on Obamacare by Dems took the eye off the ball.
US came out of GFC better than most but we still could have gotten out of it 2x faster.
But at least the sign was in the right direction.
I remember at the time reading what the European Central Bank was doing and going it's not acting like a central bank. Was trying to squeeze blood out of the less economically developed southern countries to protect French and German Banks from their own underwriting failures.
So that austerity means their response was destructive.
Reaching for a New Deal: Ambitious Governance, Economic Meltdown, and Polarized Politics in Obama's First Two Years
21st Century Monetary Policy: The Federal Reserve from the Great Inflation to Covid-19
The European Central Bank Between the Financial Crisis and Populisms
Remaking European Political Economies: Financial Assistance in the Euro Crisis
Political and Economic Dynamics of the Eurozone Crisis