Advanced Search
MyIDEAS: Login

Shocks, Crises, And Their Determinants

Contents:

Author Info

  • JUSTIN YIFU LIN

    ()
    (The World Bank, 1818 H Street, NW Washington, DC, 20433, USA)

Abstract

The current global financial crisis is the most serious both in terms of magnitude and in terms of scope since the Great Depression. No country has been immune to the economic slowdown. In advanced economies, the financial crisis and the global recession that followed the burst of the global financial bubble have brought severe consequences in terms of employment and output. In developing countries, output contraction, growth slowdown, and rising unemployment have come hand in hand with higher borrowing costs, sluggish export growth, and a significant reduction in international capital flows. As a result, poverty has increased. The global financial crisis has left lasting effects on the structure of financial markets, international capital flows, and the cost of capital for developing countries. The efforts of governments and international financial institutions to buffer the impact of the crisis have been quick and aimed in the right direction. However, many risks remain for the road to recovery. This paper provides a brief explanation of how the current global financial crisis originated, and the underlying factors that turned a relatively small collapse in the subprime mortgage market in the United States into a global crisis. It also explores similarities and differences between the current crisis and past experiences. This comparison can provide a better understanding of the main determinants and transmission mechanisms involved, which can help in the design of a better response to the current situation on the one hand, and in the prevention of future crises or minimizations of their impact on the other. Finally, the paper discusses lessons that can be learned for developing countries, focusing on the policies that governments can implement to mitigate the effects of crises and factors that are important for reducing the risks of experiencing a crisis.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=pdf&id=pii:S1793812010000216
Download Restriction: Access to full text is restricted to subscribers.

File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=html&id=pii:S1793812010000216
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Middle East Development Journal.

Volume (Year): 02 (2010)
Issue (Month): 02 ()
Pages: 159-176

as in new window
Handle: RePEc:wsi:medjxx:v:02:y:2010:i:02:p:159-176

Contact details of provider:
Web page: http://www.worldscinet.com/medj/medj.shtml

Order Information:
Email:

Related research

Keywords: Cause of crisis; bubble; development strategy; excess capacity; poverty;

Other versions of this item:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wsi:medjxx:v:02:y:2010:i:02:p:159-176. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.