Global Economic Crisis and the Indian Economy

The financial turmoil which surfaced in August 2007 in the US financial system, as a result of defaults of sub-prime mortgage loans, has blown into an unprecedented financial crisis engulfing international money, credit, equity, and foreign exchange markets. It was preceded by an extended phase of buoyant world economy, characterized by output expansion, burgeoning world trade, favorable financial and economic conditions, liquidity overhang, and low interest rates. Globally, financial confusion began in September 2008 with a series of failures of major financial institutions. The crisis has traversed from the financial to the real sector and it now looks like the recession, which is keeping world governments on tenterhooks, will be deeper - and the recovery longer - than earlier anticipated. Though adversely affected by the global meltdown, India's economy has shown considerable absorption capacity and resilience. This book focuses on the impact of the crisis on India, and on the the policy responses by the government of India, the Reserve Bank of India, the Securities and Exchange Board of India, and other agencies. The book will interest a cross-section of readers including teachers and students of economics, commerce, management, and politics.