The Impact of the Global Crisis on South Asia

_SLIDE_1_ The Impact of the Global Crisis on South Asia _SLIDE_2_ 1. INTRODUCTION What is the Global Crisis The first global financial crisis of the 21st century began with problems in the sub-prime mortgage market in the US spread around the world in September 2008 Firms and households reduce spending, resulting in a sharp economic slowdown _SLIDE_3_ CONTENTS 1 2 3 6 5 4 7 _SLIDE_4_ 2. Conventional Wisdom And The Crisis IMF (2008) pointed to the importance of policy measures to increase demand and restore economic confidence. The optimal fiscal package Timely, large, lasting, diversified, contingent, collective, and sustainable. _SLIDE_5_ 2. Conventional Wisdom And The Crisis Why it is that Fiscal policy is back in fashion. 1. One argument suggests that as Monetary and credit policy reached its limit policymakers had no other choice but to rely on fiscal policy more heavily. 2. The other argument is that as the recession across countries was expected to last…
…