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

The Europe and Central Asia (ECA) region has been hit by a crisis on multiple fronts. Countries in ECA are facing major, interrelated, external macro-financial shocks. The first is the global growth slowdown leading to falling export market demand. In addition, the prospects for inflows of remittances to low-income countries have been downgraded as economic activity in migrant host countries has declined. The second is the financial deleveraging by major banks and other financial institutions in developed economies, which has markedly reduced the availability, and increased the cost, of external finance across public, corporate, and financial sectors. The third is the recent commodity price changes, which have involved a reversal of much of the commodity price boom of 2007 and 2008. The main objective of the study is to understand the impact of these macroeconomic shocks on household well-being. In particular, it seeks to understand the key macroeconomic shocks confronted by the region and the impact of such shocks on household welfare, including the effect on household income flows, consumption levels, and liabilities. It will also assess possible strategies to cope with the crisis and manage the adverse social impact.

Bibliographic Details

Main Authors:	Tiongson, Erwin R., Sugawara, Naotaka, Sulla, Victor, Taylor, Ashley, Gueorguieva, Anna I., Levin, Victoria, Subbarao, Kalanidhi
Format:	Publication biblioteca
Language:	English
Published:	World Bank 2010
Subjects:	ACCESS TO CREDIT, ACCOUNTING, ADVANCED ECONOMIES, AGRICULTURAL ACTIVITY, AGRICULTURE ORGANIZATION, ASSET CLASSES, ASSET POSITIONS, ASSET PRICE, ASSET QUALITY, AVAILABILITY OF CREDIT, BALANCE SHEET, BALANCE SHEETS, BANK CREDIT, BANKING MARKETS, BANKING SECTOR, BANKING SECTORS, BANKING SYSTEM, BANKING SYSTEMS, BANKS, BASIS POINTS, BOND, BOND INDEX, BOND VALUATIONS, BORROWING, CAPITAL ACCUMULATION, CAPITAL ADEQUACY, CAPITAL FLOWS, CAPITAL INFLOWS, CAPITAL OUTFLOWS, CASH TRANSFERS, CENTRAL BANK, COLLATERAL, COMMODITY PRICE, COMMODITY PRICES, CONSUMER DURABLES, CONSUMER PRICE INDEX, COST OF CREDIT, CREDIT CONSTRAINTS, CREDIT CRUNCH, CREDIT DEFAULT, CREDIT DEFAULT SWAPS, CREDIT GROWTH, CREDIT MARKET, CREDIT MARKETS, CREDIT RISK, CREDIT RISKS, CREDIT SPREADS, CREDITOR, CREDITOR BANK, CREDITOR BANKS, CRISIS COUNTRIES, CURRENCY DEPRECIATIONS, CURRENT ACCOUNT, CURRENT ACCOUNT DEFICITS, DEBT BURDENS, DEBT HOLDING, DEBT OBLIGATIONS, DEBT REPAYMENTS, DEBT SERVICE, DELINQUENCY RATES, DEPOSIT, DEPOSITS, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT BANK, DEVELOPMENT FINANCE, DIVERSIFICATION, DOMESTIC LIQUIDITY, DURABLES, EARNINGS, ECONOMIC ACTIVITIES, ECONOMIC ACTIVITY, ECONOMIC CRISIS, ECONOMIC DEVELOPMENTS, ECONOMIC EFFICIENCY, ECONOMIC GROWTH, ECONOMIC POLICY, EMERGING ECONOMIES, EMERGING MARKET, EMERGING MARKETS, EMPLOYMENT OPPORTUNITIES, EQUIPMENT, EQUITIES, EQUITY HOLDINGS, EQUITY INDEX, EQUITY MARKET, EQUITY MARKETS, EXCHANGE RATE, EXCHANGE RATES, EXPORT EARNINGS, EXTERNAL FINANCE, EXTERNAL FINANCING, EXTERNAL SHOCKS, FAMILIES, FAMILY INCOME, FINANCIAL ASSETS, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL LITERACY, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL RISK, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL SHOCKS, FINANCIAL VIABILITY, FINANCING REQUIREMENTS, FISCAL DEFICITS, FISCAL POLICY, FOREIGN BANK, FOREIGN CURRENCIES, FOREIGN CURRENCY, FOREIGN CURRENCY EXPOSURES, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTORS, FUNDING SOURCES, GENDER, GLOBAL DEVELOPMENT FINANCE, GLOBAL TRADE, GOVERNMENT DEFICITS, GOVERNMENT POLICIES, GOVERNMENT POLICY, GROSS DOMESTIC PRODUCT, HOME OWNERSHIP, HOMEOWNERS, HOST COUNTRIES, HOUSEHOLD DEBT, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HOUSEHOLD WEALTH, HOUSEHOLD WELFARE, HOUSEHOLDS, HOUSING LOANS, HUMAN CAPITAL, INCOME FLOWS, INCOME SHOCKS, INDEBTED HOUSEHOLDS, INDEBTEDNESS, INEQUALITY, INFORMAL CREDIT, INTEREST RATE, INTEREST RATE RISKS, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL BANKING, INTERNATIONAL FINANCIAL MARKETS, INTERNATIONAL FINANCIAL STATISTICS, INTERNATIONAL SETTLEMENTS, JOB CREATION, LABOR FORCE SURVEYS, LABOR MARKET, LACK OF ACCESS, LIABILITY, LIABILITY SIDE, LIMITED ACCESS, LIQUIDITY, LIQUIDITY PROBLEMS, LIQUIDITY RISK, LIQUIDITY RISKS, LIVING STANDARDS, LOAN, LOAN DELINQUENCY, LOCAL CURRENCY, MACROECONOMIC CRISES, MACROECONOMIC STABILITY, MARK-TO-MARKET, MARKET ENVIRONMENT, MATURITY, MATURITY MISMATCHES, MIGRANT LABOR, MIGRANT WORKERS, MONETARY FUND, MONETARY POLICY, MONEY TRANSFER, MORTGAGE, MORTGAGE DEBT, MORTGAGE LOANS, MORTGAGES, MUTUAL FUND, MUTUAL FUNDS, NET WORTH, NPL, OIL PRICE, OIL PRICES, PENSION, PENSION FUND, PENSION FUNDS, PENSION PROVISION, PENSION SYSTEM, PENSION SYSTEMS, POLICY RESPONSE, POLICY RESPONSES, PORTFOLIO, PORTFOLIO RISK, PRICE CHANGES, PRICE MOVEMENTS, PRIVATE CAPITAL, PRIVATE CREDIT, PRIVATE INVESTMENTS, PUBLIC INVESTMENTS, PURCHASING POWER, PURCHASING POWER PARITY, RECESSION, REMITTANCE, REMITTANCES, RETURNS, RISK AVERSION, RISK MITIGATION, SAFETY NET, SAFETY NETS, SAVINGS, SECONDARY MARKET, SHARE OF EQUITIES, SOCIAL CAPITAL, SOLVENCY, SOURCE OF INCOME, SOURCES OF FUNDS, SOVEREIGN BOND, STANDARD ASSET, TRADE BALANCE, TRADE CREDITS, TRADING, UNEMPLOYMENT, UNEMPLOYMENT INSURANCE, UNION, VALUATION, VULNERABLE HOUSEHOLDS, WEALTH EFFECTS,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333038_20100104224214 http://hdl.handle.net/10986/2396
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