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:
28. An Act to Provide for the Establishment of Strategic Planning and Performance Measurement in the Federal Government, and for Other Purposes; 29. An Act to Provide Economic Stimulus through Recovery Rebates to Individuals, Incentives for Business Investment, and an Increase in Conforming and FHA Loan Limits; 30. Testimony of Martin D. Eakes before the US Senate Committee on Banking, Housing and Urban Affairs on “Oversight of the Emergency Economic Stabilization Act: Examining Financial Institution Use of Funding under the Capital Purchase Program” (13 November 2008); 31. Testimony of Arnold Kling for a Hearing of the House Committee on Oversight and Government Reform on the Collapse of Fannie Mae and Freddie Mac (9 December 2008); 32. Testimony by Franklin D. Raines before the House Committee on Oversight and Government Reform (9 December 2008); 33. Written Testimony of Mark Zandi, Chief Economist and Co-founder Moody’s Economy.com, before the US Senate Budget Committee on the Economic Outlook and Stimulus Options (19 November 2008); 34. Testimony of Simon Johnson before the Senate Budget Committee: Hearing on the Economic Outlook and Options for Stimulus (19 November 2008); 35. Testimony before the Committee on the Budget, United States Senate, of John B. Taylor, Professor of Economics, Stanford University, Senior Fellow, Hoover Institution, on the State of the Economy and Principles for Fiscal Stimulus (19 November 2008); 36. A Strategic Plan to Restore the Financial System Back to Health by John Paulson, President, Paulson and Co. Inc., Prepared for the Committee on Oversight and Government Reform (13 November 2008); 37. Statement of George Soros before the US House of Representatives Committee on Oversight and Government Reform (13 November 2008); 38. Testimony of James H. Simons before the House Committee on Oversight and Government Reform (13 November 2008); 39. Testimony of Houman B. Shadab, Senior Research Fellow, Regulatory Studies Program, the Mercatus Center at George Mason University before the House Committee on Oversight and Government Reform on Hedge Funds and the Financial Market (13 November 2008); 40. Hedge Funds, Systemic Risk, and the Financial Crisis of 2007-2008: Written Testimony of Andrew W. Lo, Prepared for the US House of Representatives Committee on Oversight and Government Reform Hearing on Hedge Funds (13 November 2008); 41. Testimony Concerning the Role of Federal Regulators: Lessons from the Credit Crisis for the Future of Regulation, by Chairman Christopher Cox, US Securities and Exchange Commission, before the Committee on Oversight and Government Reform, United States House of Representatives (23 October 2008); 42. Testimony of Iris J. Lav, Deputy Director, Center on Budget and Policy Priorities, before the House Committee on the Budget on Economic Recovery: Options and Challenges (20 October 2008); 43. Testimony of Robert F. Wescott, President, Keybridge Research LLC, Washington DC, before the US House of Representatives Committee on Oversight and Government Reform Hearing on the Financial Meltdown (6 October 2008); 44. Summary of Testimony to House Budget Committee: Lawrence H. Summers, Charles W. Eliot University Professor, Harvard University (9 September 2008); 45. A Text of the Throne Speech at Ottawa (26 January 2009); 46. Transcript of the British Prime Minister’s Speech on the Global Economy at the Reuters Building (13 October 2008); 47. Transcript of Press Conference Given by the British Prime Minister and the Chancellor of the Exchequer in London (8 October 2008); 48. Strengthen Confidence and Work: Gordon Brown’s Speech on the Global Economy at the Reuters Building (14 October 2008); 49. Speech by Christian Noyer, Governor of the Bank of France, at the European Meeting of the Accounting Profession, Paris (11 December 2008); 50. Sweden and the Financial Crisis: Speech by Svante Öberg, Deputy Governor of the Sveriges Riksbank, at Carlson Investment Management, Stockholm (20 January 2009); 51. Speech of the President of Russia at the Beginning of the Meeting on Economic Issues (16 October 2008); 52. Prime Minister Vladimir Putin’s Speech at the Opening Ceremony of the World Economic Forum at Davos, Switzerland (28 January 2009); 53. Russian President Dmitry Medvedev’s Speech at the G20 Summit; 54. Strengthen Confidence and Work Together for A New Round of World Economic Growth: Special Message by H.E. Wen Jiabao, Premier of the State Council of the People’s Republic of China at the World Economic Forum Annual Meeting 2009 (28 January 2009); 55. Global Financial Crisis and Policy Responses by the Bank of Japan: Speech by Masaaki Shirakawa, Governor of the Bank of Japan, to the Board of Councillors of Nippon Keidanren (Japan Business Federation), Tokyo (22 December 2008); 56. Statement by Shoichi Nakagawa, Minister of Finance and Governor of the IMF for Japan at the Eighteenth Meeting of the International Monetary and Financial Committee, Washington DC (11 October 2008)