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Europe > Ukraine

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Cover Regional Economic Outlook: Europe, April 2023
Regional Economic Outlook: Europe, April 2023
Europe’s Balancing Act: Taming Inflation without a Recession
International Monetary Fund. European Dept.

Abstract

Economic growth has tumbled across Europe, inflation remains too high, and financial sector risks have materialized. Taming sticky inflation while avoiding financial stress and a recession will require tighter macroeconomic policies—tailored to changing financial conditions, stronger financial regulation and supervision, and bolder supply-side reforms that heal scars from the COVID-19 and energy crises.

Keywords:
Europe; regional outlook; economic growth; recession; financial stability; inflation; Russia’s war in Ukraine; COVID-19; financial sector risks; financial stress; financial regulation; energy; Türkiye earthquakes; housing market risks; Taylor Rule; European banking sector; labor; fiscal policy; monetary policy; financial policy; recovery; European economy; inflation expectation; rate surprise; growth-inflation trade-off; headline inflation; ECB monetary policy; price cap; central bank inflation target; target rule; inflation risk; Energy prices; Central bank policy rate; Inflation targeting; Housing prices; Global
Cover IMF Working Papers
The Fall and Recovery of the Cuban Economy in the 1990's: Mirage or Reality?
Mr. Ernesto Hernández-Catá
The collapse of the Cuban economy following the cessation of Soviet assistance gave way to a strong recovery in 1994-96. There are three possible explanations for this recovery: (i) that it never took place; (ii) that it reflected a surge in productivity resulting from stabilization and liberalization in 1993-94; or (iii) that it resulted from a favorable aggregate demand shock. The second explanation-the most persuasive-suggests that a strong and durable expansion will probably not be achieved on the basis of present policies, but that the benefits of a full liberalization of the economy are likely to be considerable.
Keywords:
WP; fixed capital; GDP deflator; balance of payments; liberalization measure; output index; Cuba; growth; productivity; liberalization; transition; growth performance; price liberalization; demand shock; Total factor productivity; Employment; Labor force; Price controls; Baltics; Eastern Europe; Central and Eastern Europe