Crisis is an output of change; it is a new beckoning or a long awaited demise, a decisive break with the past arrangements. Global crises have happened more than once in the past and they are likely to happen again in the future. It is hoped that by under-standing the mistakes of the past we will be able to prevent them from occurring again in the future. There is huge explosion of writing on economic crises by economists from all parts of the world. The crisis has generated intense debate amongst academia, policy analysts, international organizations and policy makers dumping an enormous amount of literature to analyse and prevent their recurrence.
The subprime crisis broke out in August 2007 and until September 2008 was viewed within the orbit of developed countries such as the US, UK and other G7 countries resulting in a growth contraction to unprecedented levels. This metastasized into a global financial crisis in September 2008 when the largest bankruptcy in the US history was filed by Lehman Brothers following which world output fell in over six decades and so did international trade. Signs of a rapid decline in the world economy were evident as trade flows dropped low and production fell flat, initially in the developed economies and then spread onto developing countries.
The book under review is an overview of the global economic crisis from an Indian perspective. The significant feature of the book is the analysis of all four facets of the crisis—genesis, impact, response and the post crisis situation. This is a tall order for any book as existing literature mostly focuses on either one or two of the facets mentioned above. Given this target cover, the authors underscore how gaps in financial architecture continuously perpetuate the recurrence of crises. The authors take on a different approach than those of many of the other books on the same topic of economic crisis. The book avoids trying to apportion blame but instead focuses on what happened and how it can be prevented from recurring. The book is divided into six parts and this works well; part one is focused on origin, part two on causes, part three and four on impact of the crisis and parts five and six look at the policy response, the lessons from the crisis and the way forward.
During the worst years of the crisis, the authors of the book, then ...
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