The recent global financial imbroglio was initially triggered by the sub-prime crisis. But it soon encompassed sub-prime and prime mortgages, home equity loans, real estate, unsecured consumer credit, leveraged loans, municipal bonds, industrial and commercial loans, corporate bonds and derivative markets.
Increasing complexity, loss of control and regulation were clearly reflected in debilitated rich world’s financial system, plummeting stock markets, stoppage of inter-bank lending, closure of money and credit markets and failure of many banks. There were large lay-offs, unemployment, poverty, homelessness and social misery. All the advanced economies were characterized not just by recession and a severe financial and banking crisis but also a severe political crisis, a crisis of leadership for capitalism.
The chapters in this two-volume book cover a large ground. But they all coalesce into the central theme of global financial meltdown. While bringing out the elements of commonality in various crises, it shows how this was a crisis with a difference and, therefore, coordinated and concerted measures have to be implemented. Thus, an attempt is also made to suggest the way forward by providing meaningful information, critical examination and reflection on various themes of considerable contextual significance. The book raises several questions about the dynamics of economic crisis and their impact, the causative factors, instruments, and institutions involved, the regulatory architecture, policy response and strategic options and choices. The book provides a holistic understanding of the myriad complexities of the recent global financial meltdown in a proper historical and comparative perspective. It aims to develop policy measures towards a more stable and vibrant banking system, the emerging role of central banks and the policy prescriptive implications emanating from the financial meltdown.
It will be useful for economists, bankers, policymakers and businessmen. To those who wish to know about the impact of economic meltdown on the socio-economic conditions worldwide including India, the book will provide for a richly rewarding reading.
Manoranjan Sharma is Deputy General Manager in Canara Bank. He has a brilliant multi-disciplinary background, viz. a First Class First Master’s degree in Economics and a First Class Postgraduate Diploma in Business Management (equivalent to MBA). He has extensive experience in managing policy and strategic processes.
With about 200 works, including a dozen papers presented at various global conferences, Mr. Sharma is an influential thinker in development studies today. He has published three edited books, Leading Issues in Indian Economy; Essays in Money, Finance and Banking; and India’s Transforming Financial Sector.
K.R. Gupta is a well-known Economist. He has published over a dozen of books including Economics of Development and Planning; World Trade Organisation (3 vols.); Studies in Indian Economy (3 vols.); Special Economic Zones: Issues, Laws and Procedures (2 vols.); Indo-U.S. Civil Nuclear Deal (4 vols.); and Global Financial Crisis (3 vols.). Besides, he has contributed more than hundred papers in reputed journals, being published in India and abroad. He has been teaching postgraduate classes and guiding research for about two decades in the University of Jammu and Kurukshetra University. He has also worked as an Economist in private as well as in public sector.
