Though sharp eyes noticed the global financial crisis much earlier, it became prominently visible to everyone in September 2008 with the failure, merger and conservatorship of several large financial firms of the United States. The situation rapidly evolved into global credit crisis, deflation and sizeable reductions in shipping and commerce all over the world. The crisis resulted in widespread job cuts across sectors like automobile, airways, retail, real estate, among others. Some Indian policymakers argued that India would be relatively immune to this crisis because of the strong fundamentals of its economy and a well-regulated banking system. However, the crash in the Indian stock market, triggered by a pull-out of Foreign Institutional Investors (FIIs) funds, October 2008 onwards, is indicative of the integration of Indian economy with the world economy despite claims of decoupling. Global response to the financial crisis has been prompt, and by and large adequate. There have been relief plans, bailout packages, etc. in many countries of Europe, Asia and America. Federal Reserve reduced its fund rates six times in 2008—from 3.5 per cent to 1.5 per cent and has set a target rate between zero and 0.25 per cent. The European Central Bank and the Bank of England have pumped in billions of dollars in the money-market auction. President Barack Obama has brought another relief package to revive the economy, apart from sector-specific measures like housing rescue plan, and buyback plan of banks’ toxic assets. The most significant measure being taken is the sweeping overhaul of the financial regulation. In America, hedge funds, private equity firms and derivative markets will come under government supervision for the first time. Institutions like World Bank and the IMF are being revamped. The G20 meeting of 2 April 2009, held in London, can be termed as landmark in many ways. The member countries pledged more than $1 trillion for emergency loans to reverse the recession. They decided to reject protectionism and bring tighter financial regulation. Positive results can be expected sooner than later. The book Global Financial Crisis, in three volumes, attempts to provide a holistic view of the global financial turmoil. It thoroughly studies the factors that led to this crisis and its debilitating effects on economic growth, employment, industrial production, stock markets, liquidity position, exchange rates, among others. It contains articles by leading economists and experts in the field. It also consolidates, in one source, important documents—speeches, reports, declarations, etc.—relating to the issue. The book will be useful to the students, teachers and researchers of Economics, parliamentarians, policymakers, economists, and entrepreneurs in India and abroad. Common readers interested in knowing about the present global economic conditions will find it inculcating and informative.

Table of Contents:
Introduction; 1. The Global Financial Turmoil and Challenges for the Indian Economy–D. Subbarao; 2. Global Financial Crisis and Key Risks: Impact on India and Asia–Rakesh Mohan; 3. Mitigating Spillovers and Contagion Lessons from the Global Financial Crisis–D. Subbarao; 4. Obama’s Economic Solutions are Contractionary–John Tamny; 5. Lessons from the Global Financial Crisis with Special Reference to Emerging Market Economies and India–D. Subbarao; 6. Latin America and the Financial Crisis–Jorge Heine; 7. Global Financial Crisis–Uma Narula; 8. The False Death of Trickle-Down Economics–John Tamny; 9. The Global Financial Crisis: What Caused it, Where it is Heading?–Ravi Batra; 10. US Senate the False Death of Trickle-Down Economics, Part II–John Tamny; 11. The Global Meltdown and Business: An HR Perspective–Tapomoy Deb; 12. Indian PM’s Statement at the Summit of Heads of State or Governments of the G20 Countries on Financial Markets and the World Economy (Washington: 15 November 2008); 13. Remarks by Indian PM on the International Financial Crisis at the ASEM Summit (Beijing: 24 October 2008); 14. Indian Government’s Fiscal Stimulus Package Announced on 7 December 2008; 15. Speech of Finance Minister P. Chidambaram at Economic Editors’ Conference 2008; 16. Statement by Dr. D. Subbarao, Governor, RBI (27 January 2009); 17. Some Reflections on the Recent Global Financial Turmoil—An Indian Perspective (10 January 2009); 18. Text of Address of US President Barack Obama to Both Houses of Congress Outlining his Plans for America (24 February 2009); 19. Obama’s Speech on Executive Compensation; 20. Congress Trumps Obama by Cuffing Bonuses for CEOs (13 February 2009); 21. Remarks of President-Elect Barack Obama as Prepared for Delivery of American Recovery and Reinvestment (8 January 2009); 22. Bush’s Speech on the Economic Crisis (13 November 2008); 23. Text of President Bush’s Speech on Financial Crisis (24 September 2008); 24. Senator Murray’s Speech on Financial Crisis, Trade Policy, and Meeting the Challenges of the Global Economy (24 October 2008); 25. Timothy Geithner’s Speech at the Council on Foreign Relations Corporate Conference, 2008: The Current Financial Challenges: Policy and Regulatory Implications (6 March 2008); 26. US Senate Approves Stimulus Plan; 27. US Treasury Secretary Tim Geithner Outlines Comprehensive Financial Stability Plan (10 February 2009)