Financial turmoil and the lessons from the emerging world

Files

132416.pdf (96.06 KB)

Date

2008

Authors

Journal Title

Journal ISSN

Volume Title

Publisher

IDRC, Ottawa, ON, CA

Abstract

One particularly negative effect of economic crises is the destruction of institutions, making it very difficult to re-build a regulatory infrastructure under volatile conditions. This 2-page article reviews some fundamental macroeconomic themes during economic crises as they apply to emerging countries, and in this case the sub-prime crisis. Reform of international financial architecture is required in order to restrict cyclical bubbles with boom-and-bust economic effects. Feedback effects between volatility and institutions will continue to haunt developing countries. The current crisis strongly indicates that the post-2001 global growth dynamics had been unsustainable.

Description

Keywords

ECONOMIC RECESSION, MACROECONOMICS, ECONOMIC GROWTH, MONETARY POLICY, EMERGING ECONOMIES, FINANCIAL MARKET, FINANCIAL REGULATION, ECONOMIC CRISIS, GLOBALIZATION, IMF, ARGENTINA, CANADA, GLOBAL SOUTH

Citation

URI

http://hdl.handle.net/10625/45958

DOI

Collections

IDRC Research Results / Résultats de recherches du CRDI
2000-2009 / Années 2000-2009
Global and Multi-regional / Projets mondiaux et multirégionaux
Research Results (GGP) / Résultats de recherches (MCP)
Trade Policy, Investment and Economic Integration / Politique commerciale, investissement et intégration économique