This article addresses the relationship between the real economy and the financial sector, asking the question: to what extent does the crisis in the financial sector cast a shadow on economic activity? Various potential linkages are investigated, for example the impact of credit restrictions on export status and investments. Policy efforts to revitalise competitiveness and investment, and to make sure that banks resume their role as financers of new business activities, are of paramount importance to restore the process of economic growth.
|ISBN 978-92-79-35334-5 (online)|
ECFIN economic briefs are occasional working papers by the European Commission’s Directorate-General for Economic and Financial Affairs which provide background to policy discussions.