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Global Financial Crisis Methodological note: update for phase 2 studies

Research reports

Written by Dirk Willem te Velde

This paper provides an update of the methodology that country case studies can use when undertaking their research.

The methodology discusses how to report on:
• The national or regional components of the shock, to determine which countries are linked most closely to centres of the shock;
• What the effects on growth, investment, sectors, poverty and inequality are;
• What the policy responses have been.

Transmission mechanisms include:
• Private capital flows;
• Trade;
• Remittances;
• Aid;
• Summary: balance of payments and exchange rate effects.

Growth and development effects cover:
• National-level growth effects;
• Fiscal effects;
• Sector effects;
• Poverty and inequality.

Policy responses can be divided into:
• Macroeconomic policies;
• Social policies;
• Economy-wide and structural policies;
• Donor responses.

Finally, we need to look ahead and see whether the country is well placed to gain from a recovery and to respond effectively to crises in the future.

Dirk Willem te Velde