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

The crisis threatens the welfare of about 160 million people in the Europe and Central Asia (ECA) region who are poor or are just above the poverty line. Using pre-crisis household data along with aggregate macroeconomic outturns to simulate the impact of the crisis on households—transmitted via credit market shocks, price shocks, and income shocks—this report finds that adverse effects are widespread and that poor and non-poor households alike are vulnerable. By 2010, for the region as a w...