Journal de l'économie mondiale

Recent Financial Crisis and International Politics: An Analysis of Efforts to Save US Economy at the Cost of Developing Economies

Abstract

Yadav DK

Recent financial crisis which has pushed almost whole world under recession, has also affected the developing economies in many ways. Since its starting, academicians were talking about its impact on world economies in different ways. Some of them were looking the crisis as an opportunity particularly for developing countries. India and China are emerging as two most prominent face of developing economies, and it may have been an opportunity for them to strengthen their global order among the economies of world. Subprime crisis of US financial system has badly affected the US economy and weaken its position. It has been said that balance of payment position of U.S. economy is in very bad shape, and if china wish it can destabilize the U.S. economy. It has also been said that U.S. currency ($) may not enjoy the position (as international currency) and credit worthiness which it has earlier. It could have an opportunity to make a multi-polar world. But happenings of the post recession period shows that nothing much have changed, and U.S. economy almost continued its status as it was in pre crisis period. Present paper will be normative analysis to understand the politics and economics of world originations and institutions those have worked hard and fast to save the U.S. economy. It will also be attempted to understand the factors those have pushed the economies like India in double dip recession. Is there any role of international politics and world organizations in this pathetic situation, when it is being claimed that it is because of policy paralysis?