英语论文网

EMEs and current account deficits of the USA, in particular. These large and persistent imbalances represented “unearned” prosperity for deficit reserve currency countries and “unshared” prosperity for surplus countries. Such a global economic order was inherently unsustainable and unstable from the word go. In other words, the only sustainable and durable global economic growth model would be where growth and prosperity are both “earned” and “shared”. In fact, the whole thing can be likened to cosmic balance/equilibrium/harmony where stars, suns, planets, all orbit within the inviolable discipline of their elliptical orbits which do not permit deviant behaviour beyond the shortest and the longest distance from the suns and stars of the orbiting planets! Any deviant behaviour/conduct, inconsistent with the cosmic harmonious balance and equilibrium, will invite and inflict extremely retributive backlash; the more severe and prolonged the disequilibrium and imbalance, the more wrenching and excruciating will be the resulting pain as is currently being experienced.

The economic slowdown of the advanced countries which started around mid-2007, as a result of sub-prime crisis in USA, led to the spread of economic crisis across the globe. Many hegemonic financial institutions like Lehman Brothers or Washington Mutual or General Motors collapsed and several became bankrupt in this crisis. According to the current available assessment of the IMF, the global economy is projected to contract by 1.4 per cent in 2009.Even as recently as six months ago, there was a view that the fallout of the crisis will remain confined only to the financial sector of advanced economies and at the most there would be a shallow effect on emerging economies like India. These expectations, as it now turns out, have been belied. The contagion has traversed from the financial to the real sector; and it now looks like the recession will be deeper and the recovery longer than earlier anticipated. Many economists are now predicting that this ‘Great Recession' of 2008-09 will be the worst global recession since the 1930s.

1.2 Problem Statement

Indeed, it's now common to hear the assertion that the world economy changed on 15 September 2008. Certainly, there can be no doubt that the bankruptcy of Lehman Brothers heralded a sharp intensification of the global financial crisis - now so ubiquitous it has its own acronym, the GFC. This in turn has called forth an unprecedented policy response, including the effective nationalisation of large parts of several OECD economies' financial systems and a massive splurge of public sector money. It's also glaringly apparent that the financial carnage is going take a heavy toll on global economic activity in the near future. But has the crisis produced a fundamental change in the longterm trajectory of the international economy? Are the changing facts of the global economy - plummeting growth, soaring risk aversion, collapsing commodity prices, vanishing business and consumer confidence, and a massive expansion in the role of government in the economy - so significant that we also have to change our minds about the fundamental ways in which the world 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。