VIII General Assembly and Annual Conference (2009): The Political Dimensions of the World Economic Crisis
The financial turmoil that erupted in the US in August 2007 became, after the financial meltdown of mid-September 2008, the worst financial crisis and the worst global recession since the Great Depression of the 1930s. The severity of what came to be called the “Great Recession” and the collapse of international trade that accompanied it surprised even experts. The crisis had global and systemic characteristics. It showed, in particular, how dysfunctional the current international financial architecture is to manage today’s global economy. The global response has been coordinated by the G-20 and has had some novel features, but has also been partial in scope, leaving aside major issues that must also be included in any comprehensive reform of the international financial architecture.
The macroeconomic and financial policy responses to the crisis were strong though diverse among major economies. The financial meltdown was reversed and there was a recovery of economic activity in some economies, particularly in Asia, during the second quarter of 2009 and of a broader group of countries during the third quarter. Overall, these results represent a major success of Keynesian counter-cyclical macroeconomic policies. However, the recovery is still incomplete and, particularly, depends on the large stimulus that continues to be provided. Furthermore, credit remains subdued and financial stability has not been fully restored, international trade is still depressed and there is agreement that it will take a long time to reverse some of the social costs of the crisis, particularly the deterioration in employment conditions. We may be subject to new unpleasant surprises.
The Annual Conference in Pictures
Summary Video of the Annual Conference