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Jayati Ghosh: 'The Next Financial Crisis is Not Far Off'
We were told the world economy was back on track, but festering problems threaten to hit developing countries hard
It's been an difficult year globally. It began with much relief and congratulations all round, based on perceptions that the financial crisis had been handled effectively, that the Great Recession was over and that significant economies (especially in the developing world) were powering their way back to rapid growth. But it is ending on a much more tentative and even troubled note.
The rebounding of output barely touched unemployment, which remains at historically high levels in most countries. The sovereign debt problems in Europe are just an indication that the financial crisis is far from over, and will continue to reveal itself in new forms for quite some time to come. Meanwhile, the stingy and (so far, at least) visionless response of the stronger economies to the crises in peripheral Europe has condemned them to intensified contraction and ensured that the EU will generate little growth and much instability in the near future.
Jayati Ghosh is is one of the world's leading female economists. She is professor of Economics at JawaharlalNehru university, New Delhi, and the executive secretary of International Development Economics Associates (IDEAS). She is a regular columnist for several Indian journals and newspapers, a member of the National Knowledge Commission advising the Prime Minister of India and is closely involved with a range progressive organisations and social movements