As the world economy shows mounting signs of deceleration and recessionary fears intensify across global markets, the world community is likely to focus increasingly on how to undertake an effective anti-crisis response. Back in 2008-2009 one of the key factors in surmounting the crisis was a coordinated response of the largest economies via a fiscal stimulus that was coordinated by the IMF. In current circumstances the conditions for effective cross-country coordination may appear to be more challenging...
An economist who advises the government says other things hold back growth.
Here is an edited version of our conversation:
Mark Whitehouse:
Almost 20 years ago, before Vladimir Putin came to power, you told me that authoritarian rule was inevitable in Russia. As you put it, “Democracy needs capitalism, but capitalism doesn’t need democracy.” That turned out to be prescient. Now Putin is in the last of his presidential terms — assuming no changes to the constitution. What comes next? Will Russia...
... that sparked the crisis, suffer from the bankruptcy of a bank on the other side of the world? The answer can be encapsulated in one word: Globalization.
In India’s case, its rapid integration into the global financial system followed the 1998 financial crisis. It sought to raise its foreign reserves, as did every other emerging market affected by the crisis. So where was the problem? Well, The Indian corporate sector obtained external financing that accounted for close to half of their GDP ...
