European Economic Crisis: Inflation and Unemployment Impact GDP Growth Rates.
The article examines how inflation, unemployment, and GDP growth in Europe were affected by the 2008 economic crisis. Data from six European countries over 18 years was analyzed in three panels: before, during/after, and long-run. Before the crisis, inflation and unemployment did not predict GDP growth. During/after the crisis, both inflation and unemployment had a negative impact on GDP growth. The study also found evidence of causality between these variables in each panel.