1. Carsten Olsson, Unit C0 John Verrinder, Unit C4
The impact of the financial crisis or An economic and financial crisis in figures
Carsten Olsson, Unit C0
John Verrinder, Unit C4

2. Latest news…

3. Background to the Financial Crisis
Start in 2007 (US – Europe – worldwide)
Debate on the main causes, but financial deregulation and asset bubbles commonly mentioned.
Two main phases:
2007 to 2009: “Private” credit crisis
2010 to 2011…: “Public” credit crisis (government debt)
Ongoing impacts on real economy
GDP, unemployment

4. Policy responses Measures to address the crisis in financial markets
Bank rescues
Central Bank intervention
Fiscal stimulus followed by austerity measures
Partly the consequence of recession, but also policy.
European Economic Governance
European Systemic Risk Board
Commission proposal of September 2010
Greater role for government debt; macroeconomic imbalances

5. The role of government…

6. Statistical issues
Main conclusion is that statistics were not a cause of the financial crisis !
But the way in which statistics were used (“joining the dots”) could have been better…
Main issues being addressed:
More data on financial sector, especially linkages
More emphasis on real estate prices (project underway)
More data considered when analysing public finances

7. Some key indicators – GDP (seasonally adjusted)

8. Some key indicators - Unemployment

9. Some key indicators – Household net borrowing (loans)

10. Some key indicators – government debt

11. Conclusions Major economic and financial crisis
Future improvements in:
Policymaking (European economic governance…)
Statistics (coverage of financial sector; timeliness)
Statistics are highly relevant…!