Stijn Claessens, M. Ayhan Kose, Marco Terrones, 22 May 2009

Many analysts suggest the economic recovery may have started but others worry that the sorry state of developed countries’ financial systems will prolong the recession. Can economic activity revive absent a recovery in credit and housing markets? This column presents new research suggesting that a “creditless recovery” is possible, but it would likely be slow and shallow.

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CEPR Policy Research