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:
57. Full Text of President Lee Myung-bak’s Keynote Speech at G20 Summit; 58. Australian PM’s Statement on Global Financial Crisis (26 November 2008); 59. The Australian Response to the Global Financial Crisis: Address to the Federal Labor Business Forum, Sofitel Wentworth Hotel, Sydney (3 October 2008); 60. The Financial Crisis—Impact on Africa: Remarks by Ms Linah K. Mohohlo, Governor of the Bank of Botswana and a Member of the African Progress Panel (APP) at Tunis, Tunisia (12 November 2008); 61. The Euro At 10: The Next Global Currency? Speech by Dominique Strauss-Kahn, Managing Director of the International Monetary Fund, at the Peterson Institute (10 October 2008); 62. Transcript of a Conference Call on the IMF’s Executive Board Approval of a Stand-by Arrangement for Iceland with Poul Thomsen, IMF Mission Chief for Iceland and Deputy Director in the European Department; Petya Koeva-Brooks, Senior Economist in the European Department; Ángela Gaviria, Press Officer, IMFMedia Relations, Washington DC (20 November 2008); 63. Global Prospects and Policies: Speech by John Lipsky, First Deputy Managing Director International Monetary Fund, at the Securities Industries and Financial Markets Association (SIFMA) (28 October 2008); 64. The Global Economy and Financial Crisis: Speech by John Lipsky, First Deputy Managing Director, International Monetary Fund, at the UCLA Economic Forecasting Conference (24 September 2008); 65. Remarks to the Board of Governors of the IMF at the Joint Annual Discussion, 2008 (Annual Meetings of the IMF and the World Bank Group) by Dominique Strauss-Kahn, Chairman of the Executive Board and Managing Director of the IMF, Washington DC (13 October 2008); 66. Lessons from the Financial Market Crisis: Priorities for the World and for the IMF [Speech by Dominique Strauss-Kahn, Managing Director of the International Monetary Fund, to the Indian Council for Research on International Economic Research (ICRIER) New Delhi, India] (13 February 2008); 67. Statement by WHO Director-General Dr. Margaret Chan on Impact of the Global Financial and Economic Crisis on Health (12 November 2008); 68. G20 London Summit: Official Communiqué (2 April 2009); 69. G20 Finance Ministers’ and Central Bank Governors’ Communiqué (14 March 2009); 70. G20 Declaration on Global Financial Crisis; 71. Group of 20’s Statement on Global Financial Crisis (10 November 2008); 72. Global Employment Trends, January 2009; 73. Macroeconomic Developments: Third Quarter Review 2008-09; 74. Global Economic Slump Challenges Policies—IMF Outlook