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

The global financial crisis, which has led to a sharp slowdown in economic activity everywhere, including the emerging markets in Europe and Central Asia, now risks reversing the substantial gains and improvements in living standards achieved by the region over the past few years. It threatens the well-being of millions of people in the region who are poor or who are living just above the poverty line and at risk of easily falling into poverty as economies contract. This book 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 draws on a large, cross-country database of recent household surveys and presents regional overviews as well as relevant country examples to illustrate the incident and distribution of specific vulnerabilities. Book jacket.