verma (ed.) - recession and its aftermath; adjustments in the united states, australia, and the emerging asia (2013)

[...]... MD, USA N.M.P Verma (ed.), Recession and Its Aftermath: Adjustments in the United States, Australia, and the Emerging Asia, DOI 10.1007/97 8-8 1-3 2 2-0 53 2-6 _1, © Springer India 2013 1 2 N.M.P Verma and V Dutta This fluctuation was explained by a few theories of the business cycle (Van der Ploeg 1985) With the advent of Keynesianism, business cycle theories were not accepted During the post-Keynesian period,... also examine the recessionary impact in South Korea, Indonesia, and other Eastern countries In the ninth chapter, the focus is on the Indian economy In this chapter input– output analysis is done with the help of time-series data In the tenth chapter, challenges and opportunities facing the Indian banking sector are examined The chapter states that the banking sector could perform miracles in the Indian... etc.), mergers and acquisitions, and other forms of reducing the workforce in order to save costs The unemployment rate in the country increased from 2.6 % in 1997 to over 5 % in 1998 In the finance, insurance, realestate, and business service sectors, 6,596 workers were retrenched As a result of the crisis, the banking sector in Malaysia began to experience increasing nonperforming loans, bringing about... took the lead, with increased government consumption expenditure to overcome the negative impact of the crisis The economy again came back on track in the later half of 2009–2010, with more growth of investment demand in the economy The recent recession and the challenges and opportunities for rebalancing Indian banking are considered in the tenth chapter by D.K Yadav India is an emerging economy Its. .. to expand its business at the world level According to the Indian Bank Association report “Banking Industry Vision 2010,” there will be a greater presence of international players in the Indian financial system and some of the Indian banks will become global players in the coming years The current competitive position of the Indian banking system, however, is not satisfactory in terms of numbers and ranks... accident or by design They have a unique opportunity to expand their cooperation over the ensuing decades Liang-Xin Li focuses attention on the Chinese economy since the global crisis in the fifth chapter Since the Chinese economy took a fast growth path toward the top of the world economy, it is interesting to examine China’s way of development He demonstrates what China was doing, is doing, and will do to... process is reversed and 4 N.M.P Verma and V Dutta Contraction Expansion GDP Upswing Upswing Y1 Y0 Downswing O Year Fig 1.1 Formation and movement of the economic cycle thus the rate of in ation falls So during a recession there is rising unemployment and a falling rate of in ation, whereas during a boom there is falling unemployment and an increasing rate of in ation (Goodwin et al 2009) These tendencies... affected by the propensity of capitalists to save under certain assumptions In the case of a rise in saving by workers, there would be a fall in the income of capitalists The economy will be balancing off the initial impact Thus, investment will decline if the income of capitalists declines This will lead to constrained investment and a slump in the economy Thus, the Cambridge version uses income distribution... that inadequate information and lack of regulations in the financial sector caused the US recession A recession caused by financial factors lasts longer than a recession caused by other factors In the second chapter, Mukti Upadhyay and Tim Mason examine the US recession The chapter provides the historical background to the financial crisis The recent recession is termed the “Great Recession. ” The recession. .. basic human needs If platinum can result in more profit than medicines, then a firm would invest in platinum production and marketing rather than in medicines This makes the market inefficient Further, the market does not consider social obligations, such as caring for the sick, elderly, children, the otherwise able, widows, and other needy persons Lastly, information systems and investment expectations . w1 h0" alt="" Recession and Its Aftermath N.M.P. Verma Editor Recession and Its Aftermath Adjustments in the United States, Australia, and the Emerging Asia Editor N.M.P. Verma Department. University Lucknow, India ISBN 97 8-8 1-3 2 2-0 53 1-9 ISBN 97 8-8 1-3 2 2-0 53 2-6 (eBook) DOI 10.1007/97 8-8 1-3 2 2-0 53 2-6 Springer Dordrecht Heidelberg New York London Library of Congress Control Number: 2012943593 © Springer. recovers. Starting with a brief theory and recent history of the US crisis and the recession in the fi rst, introductory chapter, the discussions in the second chapter turn to the area of the fi nancial