Asian governments curtailed world price transmission to domestic markets to shield consumers from rising global oil prices in 2008. Countries with fiscal surpluses would be in a better fiscal position to respond to steep rises in oil prices.
01 Dec 2008 | Papers and Briefs | Economics Working Papers
The global economy is threatened with a deep and prolonged recession as a consequence of the financial meltdown that began with the housing price crisis in the United States. The financial implications of the global macroeconomic imbalances that have persisted and enabled the housing bubble to develop with the spread of toxic mortgage-backed securities first became apparent in September and October 2008 with the collapse of major investment banks and mortgage loan institutions, and the credit freeze and the panic that ensued in global equity markets.