Euro-Mediterranean Process - Union for the Mediterranean: Macroeconomic and Financial Developments in the Wake of the Global Crisis at the Southern Rim of the Mediterranean
34 Pages Posted: 12 May 2010
Date Written: July 30, 2009
Abstract
Although the global financial and economic crisis hurt economies worldwide, the economies at the southern Mediterranean rim have so far done well to weather this global hurricane. However, their economic growth has been slowing down and dependent upon their domestic policy reactions amongst others, the size of the trough of their economic business cycle will be determined. Escaping from a difficult period with soaring food and oil prices the southern Mediterranean region is faced with new challenges that impact the real sector of their economies, but also their financial sectors. While the southern Mediterranean economies are hit more in their real than financial sectors, negative effects from their real sector spill over to their financial sectors, and expectedly vice versa, which may lead to a spiral unless adequate policy actions are taken. The recent macroeconomic, monetary and financial developments, the use of fiscal, monetary and financial policy instruments, the volatility at their financial markets, trade openness and the imperative need for good governance are the main subjects of this chapter.
Keywords: Mediterranean Economies, Global Crisis
JEL Classification: 011
Suggested Citation: Suggested Citation