Author Description

Reviews the causes and consequences of, and policy responses to the crisis. Argues that: (1) the global economy was not as stable as thought, and that the majority of the world's poor had not benefited sufficiently from stronger economic growth; (2) complex and interlinked factors (loose monetary policy, global imbalances, misperception of risk and lax financial regulation) lay behind the crisis; (3) differences in initial conditions, transmission channels and vulnerabilities of economies, as well as the role of government policy in mitigating the downturn have produced diverse impacts; and (4) public debt and continuing global imbalances could derail recovery.