The Crisis Hits Home : Stress-Testing Households in Europe and Central Asia

The financial crisis and economic downturn threatens the welfare of more than 160 million people who are poor or are just above the poverty line in the economies of Eastern and Central Europe, the former Soviet Union, and Turkey. This note concerns the findings of recent World Bank analysis (Tiongson et al. 2010) that uses precrisis household data and aggregate macroeconomic outcomes in these countries to simulate the impact of the crisis on households, transmitted via credit market shocks, price shocks, and income shocks. The adverse effects are widespread, with both poor and non-poor households being vulnerable. By 2010, for the region as a whole, it is estimated that some 11 million more people will be in poverty and more than 23 million additional people will find themselves just above the poverty line because of the crisis.

Bibliographic Details

Main Authors:	Sulla, Victor, Sugawara, Naotaka, Taylor, Ashley, Tiongson, Erwin R.
Language:	English
Published:	World Bank, Washington, DC 2010-05
Subjects:	ACCESS TO EDUCATION, ADVERSE EFFECTS, ANALYTICAL APPROACH, ASSETS, BANK LOANS, CENTRAL BANK, CENTRAL BANKS, COMMODITY, COMMODITY PRICES, CONSOLIDATION, CREDIT MARKET, CREDIT MARKETS, CURRENCY VALUE, DATA AVAILABILITY, DEBT, DEBT BURDEN, DEBT SERVICE, DEBT SERVICE PAYMENTS, DEPRECIATIONS, DEVELOPING ECONOMIES, DURABLE, DURABLE GOODS, ECONOMIC CRISIS, ECONOMIC DOWNTURN, ECONOMIC EFFICIENCY, ECONOMIC POLICY, ECONOMIC SHOCKS, EMPLOYMENT, EQUITY HOLDINGS, EUROPEAN CENTRAL BANK, EXCHANGE RATE, EXPENDITURES, EXPORT REVENUES, EXTERNAL FINANCE, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL SECTORS, FINANCIAL STABILITY, FINANCING SOURCES, FISCAL CONSOLIDATION, FISCAL POLICY, FOOD SHARE, FOREIGN CURRENCY, GLOBAL SLOWDOWN, GOVERNMENT DEFICITS, GOVERNMENT POLICY, HOUSEHOLD BUDGET, HOUSEHOLD WELFARE, HOUSING, HUMAN DEVELOPMENT, IMPACT OF SHOCKS, INCOME, INCOME SHOCKS, INCOMES, INDEBTED HOUSEHOLDS, INDEBTEDNESS, INTEREST PAYMENT, INVESTMENT EXPENDITURES, LABOR MARKET, LIVING STANDARDS, LOAN, LOCAL CURRENCY, LOW-INCOME COUNTRIES, MACROECONOMIC SHOCKS, MIDDLE-INCOME COUNTRIES, MIGRATION, MONETARY FUND, MORTGAGE, MORTGAGE DEBT, NATIONAL BANK, NATIONAL BANK OF HUNGARY, PAYMENT OBLIGATIONS, PENSIONS, POLICY RESPONSE, POLICY RESPONSES, POOR PEOPLE, POVERTY ASSESSMENT, POVERTY IMPACT, POVERTY LINE, POVERTY REDUCTION, PRICE INCREASES, PUBLIC SPENDING, REDUCTION IN POVERTY, REGIONAL ECONOMIC ACTIVITY, REGIONAL POVERTY, REGIONAL RECESSION, RELATIVE PRICES, REMITTANCE, SAFETY NETS, SAVINGS, SLOWDOWN, SOCIAL PROTECTION, SOCIAL SAFETY NETS, SOCIAL SERVICES, SUBREGIONS, SVERIGES RIKSBANK, UNEMPLOYMENT RATES, VARIABLE INTEREST RATES, VULNERABLE HOUSEHOLDS, VULNERABLE PEOPLE, WAGES, WEALTH EFFECTS,
Online Access:	http://documents.worldbank.org/curated/en/2010/05/12271865/crisis-hits-home-stress-testing-households-europe-central-asia https://hdl.handle.net/10986/10185
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