Laurence Ball has a column at VOX which argues that the 2008 financial crisis, and the Great Recession which followed it, did lasting harm in OECD economies - levels of output seem to be much lower than their long-run potential. His working paper is here.
According to Ball, "the loss in potential varies greatly across countries, but is large in most cases. For 2015, the loss ranges from almost nothing in Switzerland and Australia to over 30% in Greece, Hungary, and Ireland. The average loss for the 23 countries in the sample, weighted by the sizes of their economies, is 8.4%". The loss for the UK is 12.4%. He also finds that the more several the recession, the greater the loss of potential output.
According to Ball, "the loss in potential varies greatly across countries, but is large in most cases. For 2015, the loss ranges from almost nothing in Switzerland and Australia to over 30% in Greece, Hungary, and Ireland. The average loss for the 23 countries in the sample, weighted by the sizes of their economies, is 8.4%". The loss for the UK is 12.4%. He also finds that the more several the recession, the greater the loss of potential output.
