Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Global Financial Crisis of 2008-10: A View from the Social Sectors

Contents:

Author Info

  • Sara Guerschanik Calvo

    ()
    (School of International and Public Affairs (SIPA), Columbia University)

Registered author(s):

    Abstract

    The impact of the US financial crisis that unfolded in 2008 has been global. It was felt in output, trade, and cross-border capital flows and transfers. Incomes have dropped and consumption patterns are changing, placing at risk the human development gains of the 1990s. At the heart of this global crisis is a credit crunch that has put financial strains on firms and individuals and has led to a large number of job losses and drops in income from other sources. Having learned the lessons from past financial crises, some countries were well prepared and, with support from the international financial community, lessened the impact of the crisis. Still, current estimates about the impact of the Crisis are staggering. But country experiences show that in the past there have been huge overestimates of the impact on human development indicators that may be the case again now. The high share of developing-country exports in total exports to advanced countries and the high number of women—pivotal in child development--in developing country-export sectors, make focusing on national and global actions conducive to restore world credit a priority for policymakers. High on the action list is restoring credibility in financial markets, making credit accessible to small businesses that account for a large share of employment globally, strengthening the absorptive capacity of public spending, and expanding social protection programs. This paper is a compilation of selected literature on the impact of financial crisis on jobs, other sources of private income and public social spending and on human development. The paper uses the bank run and sudden stop framework of financial-crisis analysis, discusses country cases, and summarizes the lessons learned from current as well as past crises to prevent loosing sources of income.

    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://hdr.undp.org/en/reports/global/hdr2010/papers/HDRP_2010_18.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Human Development Report Office (HDRO), United Nations Development Programme (UNDP) in its series Human Development Research Papers (2009 to present) with number HDRP-2010-18.

    as in new window
    Length: 69 pages
    Date of creation: Jul 2010
    Date of revision:
    Publication status: Published as background research for the 2010 Human Development Report.
    Handle: RePEc:hdr:papers:hdrp-2010-18

    Contact details of provider:
    Postal: 304 E 45th Street, FF-12th Floor, New York, NY, 10017
    Phone: +1-212-906-3661
    Fax: +1-212-906-5161
    Email:
    Web page: http://hdr.undp.org
    More information through EDIRC

    Related research

    Keywords: financial crisis; credit; jobs; human development;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Dang, Hai-Anh & Knack, Steve & Rogers, Halsey, 2009. "International aid and financial crises in donor countries," Policy Research Working Paper Series 5162, The World Bank.
    2. Guillermo A. Calvo & Alejandro Izquierdo & Luis Fernando Mejía, 2004. "On the Empirics of Sudden Stops: The Relevance of Balance-Sheet Effects," Research Department Publications 4367, Inter-American Development Bank, Research Department.
    3. Schularick, Moritz & Taylor, Alan M., 2009. "Credit Booms Gone Bust: Monetary Policy, Leverage Cycles and Financial Crises, 1870-2008," CEPR Discussion Papers 7570, C.E.P.R. Discussion Papers.
    4. Enrique G. Mendoza & Marco E. Terrones, 2008. "An Anatomy Of Credit Booms: Evidence From Macro Aggregates And Micro Data," NBER Working Papers 14049, National Bureau of Economic Research, Inc.
    5. Olivier Blanchard & Giovanni Dell'Ariccia & Paolo Mauro, 2010. "Rethinking Macroeconomic Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(s1), pages 199-215, 09.
    6. Ricardo Caballero G. & Eduardo Engel G. & Alejandro Micco A., 2004. "Microeconomic Flexibility in Latin America," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 7(2), pages 5-26, August.
    7. Cavallo, Eduardo A. & Frankel, Jeffrey A., 2008. "Does openness to trade make countries more vulnerable to sudden stops, or less? Using gravity to establish causality," Journal of International Money and Finance, Elsevier, vol. 27(8), pages 1430-1452, December.
    8. Reinhart, Carmen & Vegh, Carlos & Velasco, Andres, 2008. "Money, Crises, and Transition Essays in Honor of Guillermo A. Calvo: An Introduction," MPRA Paper 13232, University Library of Munich, Germany.
    9. Ferreira, Francisco H. G. & Schady, Norbert, 2008. "Aggregate economic shocks, child schooling and child health," Policy Research Working Paper Series 4701, The World Bank.
    10. Guillermo A. Calvo, 2006. "Monetary Policy Challenges in Emerging Markets: Sudden Stop, Liability Dollarization, and Lender of Last Resort," NBER Working Papers 12788, National Bureau of Economic Research, Inc.
    11. Joshua Aizenman & Nancy Marion, 2009. "Using Inflation to Erode the U.S. Public Debt," NBER Working Papers 15562, National Bureau of Economic Research, Inc.
    12. Friedman, Jed & Schady, Norbert, 2009. "How many more infants are likely to die in Africa as a result of the global financial crisis ?," Policy Research Working Paper Series 5023, The World Bank.
    13. Reinhart, Carmen & Kaminsky, Graciela, 1999. "The twin crises: The causes of banking and balance of payments problems," MPRA Paper 14081, University Library of Munich, Germany.
    14. Arbache, Jorge Saba & Page, John, 2007. "More growth or fewer collapses ? a new look at long run growth in Sub-Saharan Africa," Policy Research Working Paper Series 4384, The World Bank.
    15. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "This Time Is Different: Eight Centuries of Financial Folly," Economics Books, Princeton University Press, edition 1, volume 1, number 8973.
    16. Markus K. Brunnermeier, 2008. "Deciphering the Liquidity and Credit Crunch 2007-08," NBER Working Papers 14612, National Bureau of Economic Research, Inc.
    17. Sebastian Edwards, 2009. "Latin America's Decline: A Long Historical View," NBER Working Papers 15171, National Bureau of Economic Research, Inc.
    18. Graciela L. Kaminsky & Carmen M. Reinhart & Carlos A. Vegh, 2004. "When it Rains, it Pours: Procyclical Capital Flows and Macroeconomic Policies," NBER Working Papers 10780, National Bureau of Economic Research, Inc.
    19. Reinhart, Carmen & Reinhart, Vincent, 2008. "Capital Flow Bonanzas: An Encompassing View of the Past and Present," CEPR Discussion Papers 6996, C.E.P.R. Discussion Papers.
    20. Maureen Lewis & Marijn Verhoeven, 2010. "Financial Crises and Social Spending," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 11(4), pages 79-110, October.
    21. Guillermo A. Calvo, 2009. "FINANCIAL CRISES AND LIQUIDITY SHOCKS: A Bank-Run Perspective," NBER Working Papers 15425, National Bureau of Economic Research, Inc.
    22. Jonathan David Ostry & Atish R. Ghosh & Karl Friedrich Habermeier & Marcos Chamon & Mahvash Saeed Qureshi & Dennis B. S. Reinhardt, 2010. "Capital Inflows," IMF Staff Position Notes 2010/04, International Monetary Fund.
    23. Sinn, Hans-Werner, 2009. "Shock Producers and Shock Absorbers in the Crisis," Munich Reprints in Economics 19634, University of Munich, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    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:hdr:papers:hdrp-2010-18. 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: (HDRO/UNDP).

    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.