Global Recession-The Sub-Prime Crisis
Published: 2010
Author(s) Name: Leena Kaushal
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Abstract
The present paper is an attempt to examine the impact of Global recession on the Indian Economy as a whole. The subsequent subprime mortgage crisis in the United States has besieged complete world economy with the varying degree of recessional impact. The central element in the current financial turbulence that led to the recession is the housing bubble. International financial institutions of advanced economies suffered a major setback in terms of heavy losses and it was certain that the impact will be passed on to the various countries of the world. India, like most other emerging market economies is certainly impacted by the recent financial crisis but the impact is not as serious as borne by US or Europe. Thanks to Indian banks that are more or less secured from the ill effects of subprime mess because their exposure to complex instruments like CDO’s is almost nil.
Keywords: Global Recession, Housing Bubble, Lehman Brothers
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