International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
www.ijsr.net | Most Trusted Research Journal Since Year 2012

ISSN: 2319-7064



Research Paper | Economics | India | Volume 4 Issue 9, September 2015

Global Economic Crisis: An Empirical Study on the Diverging Scenario of Emerging Economies Post Crisis

Rohit Kanda

The global crisis, that began in July 2007 with the credit crunch, is considered by many economists the worst financial crisis since the Great Depression of the 1930s. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of U.S. dollars, and a downturn in economic activity leading to the 20082012 global recession and contributing to the European sovereign-debt crisis. With half a decades hindsight, it is clear the crisis had multiple causes. The most obvious is the financiers themselvesespecially the irrationally exuberant Anglo-Saxon sort, who claimed to have found a way to banish risk when in fact they had simply lost track of it. The Great Moderationyears of low inflation and stable growthfostered complacency and risk-taking. The Feds defenders shift the blame to the savings glutthe surfeit of saving over investment in emerging economies, especially China. That capital flooded into safe American-government bonds, driving down interest rates. Low interest rates created an incentive for banks, hedge funds and other investors to hunt for riskier assets that offered higher returns. The low volatility of the Great Moderation increased the temptation to leverage in this way. If short-term interest rates are low but unstable, investors will hesitate before leveraging their bets. But if rates appear stable, investors will take the risk of borrowing in the money markets to buy longer-dated, higher-yielding securities. That is indeed what happened. Likewise, this study tends to focus upon the long sustaining issues developed from the crisis and analyzing the prospective future trends to the growth of world economy as a whole.

Keywords: The Crisis, Collective Economic Impact, Ways to recover up, Siblings of Recovery, Way Ahead

Edition: Volume 4 Issue 9, September 2015

Pages: 1943 - 1946

Share this Article

How to Cite this Article?

Rohit Kanda, "Global Economic Crisis: An Empirical Study on the Diverging Scenario of Emerging Economies Post Crisis", International Journal of Science and Research (IJSR), https://www.ijsr.net/search_index_results_paperid.php?id=SUB158577, Volume 4 Issue 9, September 2015, 1943 - 1946

38 PDF Views | 39 PDF Downloads

Download Article PDF

Similar Articles with Keyword 'The Crisis'

Research Paper, Economics, India, Volume 4 Issue 9, September 2015

Pages: 1943 - 1946

Global Economic Crisis: An Empirical Study on the Diverging Scenario of Emerging Economies Post Crisis

Rohit Kanda

Share this Article

Research Paper, Economics, India, Volume 4 Issue 10, October 2015

Pages: 1165 - 1168

Impact on the Economy of Developing Countries in the Global Economic Crisis

Soliman Musbah Albandag

Share this Article

Research Paper, Economics, India, Volume 8 Issue 6, June 2019

Pages: 1949 - 1957

Water for Life: Issues and Challenges

B. Suresh Lal

Share this Article

Review Papers, Economics, China, Volume 8 Issue 8, August 2019

Pages: 310 - 314

The Impact of Economic Crisis on the International Investment Position and Foreign Direct Investments of European Union

Khakkul Khumoyun, Wei Wang, Ravshan Islomov

Share this Article

Review Papers, Economics, Morocco, Volume 5 Issue 12, December 2016

Pages: 706 - 711

Financial Stability and Regulation: Elements of Analysis in Reference to the Moroccan and Foreign Experiments

Mohammed Yassine EL HADDAD, Mohammed Amine EL YOUSSI

Share this Article



Top