By early-2007, it became clear as housing prices began to decline, losses on sub-primate mortgages that originated in 2003-2006 were rising more rapidly than the assumptions used and risk-model predictions. The deterioration in borrowing quality and other shortcomings mentioned above gave little comfort to investors.
The collapse of the dot.com bubble in early-2001 and the 9/11 attacks was followed by an easing of monetary policy in the US and Euro Area as a response to avert an economic slow-down. Around the same time, coming out of the Asian crisis, emerging BRICs and Gulf countries started building up huge foreign exchange reserves, primarily denominated in US dollars and safest financial securities, such as US Treasury bills.
What? Senior Policy Seminar on
“Managing Capital Flows and Growth
in the Aftermath of the Global Crisis”
When? April 27-30, 2010
Where? Paris, France
Are you a young enterpreneur (between the ages of 15 and 30) or organization with a small-scale youth project, addressing the thematic areas of youth development supported under the Global Public-Private Partnership for Youth Investment (GPYI): entrepreneurship, civic engagement and empowerment?
Are you from any of the following eligible Middle East & North Africa (MENA) countries: Algeria, Egypt, Jordan, Lebanon, Libya, Morocco, Syria, Tunisia, or West Bank and Gaza?
A global financial and economic convulsion of the magnitude we have just experienced should offer valuable lessons. The December 2009 of Development Outreach, “Growing Out of Crisis,” offers a multifaceted picture that sheds new light on the impact of the crisis from different perspectives and in different parts of the world, and discusses changes at national and international levels that would better protect us from the next crisis.
Innovation is crucial in long-term economic growth, even more so in the aftermath of the financial and economic crisis. Making innovation-driven growth happen requires action in a wide range of policy areas, from education and science and technology, to product and labor markets and trade. The OECD and the World Bank are joining forces to work more closely on innovation, particularly insofar as this issue is a crucial factor in the success of development policy, notably in middle-income economies.
Proponents of state intervention argue that ‘market failures’ in information, coordination, credit and others necessitate ‘infant-industry protection’ and therefore an activist role for the government. For example, information about success or failure of new industries or technological adoption may be only available to investors and innovators and not shared with other entrepreneurs. Also, new industries and technologies require complementary human capital, and basic infrastructure among other things.