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The Emerging Economies and the Great Recession

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Emerging Economies During and After the Great Recession

Part of the book series: International Papers in Political Economy Series ((IPPE))

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Abstract

This chapter examines the impact of the recent global crisis on emerging economies and draws a number of policy conclusions. It shows that the impact of the crisis was more pronounced in countries that had initial weaker fundamentals and greater openness to global financial and trade links. It is also revealed that while emerging economies had exhibited some resilience through the early stages of the financial turmoil, they have been hit hard since the mid-2008. While this is partly explained by the collapse in world trade and the sharp drop in commodity prices, this will not tell the full story. Misguided policies in the major economies of the world, especially the USA, produced a dangerous situation in some of the emerging economies, leading to the creation of bubbles. This chapter investigates the transmission mechanisms that seem to be in operation in this regard; and will conclude by offering policy recommendations to the emerging economies to reduce their exposure to external vulnerabilities.

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Authors and Affiliations

  1. Regent’s University, London, UK

    Ahmad Seyf

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  1. Ahmad Seyf
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Editors and Affiliations

  1. Cambridge Centre for Economic and Public Policy, University of Cambridge, UK

    Philip Arestis (Director of Research and Professor of Economics) (Director of Research and Professor of Economics)

  2. University of the Basque Country, Spain

    Philip Arestis (Director of Research and Professor of Economics) (Director of Research and Professor of Economics)

  3. University of Leeds, UK

    Malcolm Sawyer (Emeritus Professor of Economics) (Emeritus Professor of Economics)

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© 2016 Ahmad Seyf

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Seyf, A. (2016). The Emerging Economies and the Great Recession. In: Arestis, P., Sawyer, M. (eds) Emerging Economies During and After the Great Recession. International Papers in Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137485557_2

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