Recession and Its Aftermath: Adjustments in the United States, Australia, and the Emerging Asia

279 Pages·2013·2.52 MB·English

by  N. M. P. Verma

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 of Economics
Babasaheb Bhimrao Ambedkar University
Lucknow, India
ISBN 978-81-322-0531-9 ISBN 978-81-322-0532-6 (eBook)
DOI 10.1007/978-81-322-0532-6
Springer Dordrecht Heidelberg New York London
Library of Congress Control Number: 2012943593
© Springer India 2013
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In honor of Kamta Prasad

Preface
Recession is an economic instability that touches every person, the economy, and
society. It ultimately also affects other economies depending upon the intensity of
cross-country integration, openness, and trading. Therefore, bringing out a book
like this is de fi nitely the need of the hour when the world has just witnessed a global
recessionary crisis.
The initial thoughts for creating this volume arose during my visit to Wisconsin,
Madison, USA, in the post recession year of 2010. There, a few contributors to this
book and many other academicians informally deliberated on the issue of fi ghting
the recession which took place during 2007–2009 in the USA. The US economy
was trying its best to recover by taking expansionary measures. It was also delibe-
rated by some that the US recession had probable impacts on Europe, Australia,
emerging Asia, and other continents. After my return from the USA, I formally
started this project, had discussions with a large number of researchers, and invited
many economists from this fi eld to contribute a chapter. Some of them have con-
tributed and some wanted much more time to contribute. As time is a very important
factor for this kind of study where the book should be published on time, only 11
contributions could be compiled in this volume. The chapters in this volume mostly
focus on the USA, Australia, China, India, and Malaysia. However, the contributors
also discuss European economies and Asian economies, such as those of Pakistan,
Nepal, Bhutan, the Maldives, South Korea, Indonesia, and a few other core countries
for a general description of recession.
In creating this volume we were assisted by a large number of people and institu-
tions. First and foremost we must thank the contributors, whose unconditional
commitment and prompt submission of their chapters made my job as the editor
quite smooth and easy. I am also thankful to many of my colleagues and friends,
including Nirankar Srivastava, P.K. Sinha, several colleagues from various other
institutions, and Ejaz Ghani, who is currently at the World Bank, for motivating me
to convert this dream project into reality.
Sagarika Ghosh, Sahadi Sharma, and their colleagues at Springer came forward
to bring out this volume. Their valuable comments on the preliminary draft further
reduced many shortcomings. I am extremely thankful to them for their work on the
vii
viii Preface
production of this volume in about 5–6 months. I also thank Madhu Patel, Atul
Kumar, and Vinit Kumar for typesetting and computational work. Lastly, I am
thankful to our postgraduate students and PhD scholars, to whom I have been teaching
macroeconomics for many years, for raising many complicated questions. This
helped to re fi ne the project.
I dedicate this book to Kamta Prasad, with whom I had a research association
and from whom I learned the workings of a complex economy. I expect this volume
to be of immense help as a reference book for postgraduate students, research schol-
ars, academicians, corporate consultants, fi nancial experts, and other members of
universities and research institutions in the fi elds of economics, management, and
commerce across the globe.
N.M.P. Verma
Contents
1 Understanding Recession: Conceptual
Arguments and US Adjustments ........................................................... 1
N.M.P. Verma and V. Dutta
2 The Financial Crisis and the Great Recession
in the United States ................................................................................. 23
Mukti Upadhyay and Tim Mason
3 Dynamics of Deflation and Unemployment:
Fall into an Abyss of Depression ............................................................ 47
Anson Wong and Michael Chu
4 Market Fluctuations and Country Risk
Relationships for Australian and Indian Energy ................................. 67
John Simpson
5 The Chinese Economy After the Global Crisis .................................... 81
Liang-Xin Li
6 The Role of Macroeconomic Fundamentals
in Malaysian Post Recession Growth .................................................... 113
Lee Chin
7 Impact of Global Financial Crisis on Economic Wellbeing:
A Case of South Asia ............................................................................... 129
Nikhil Chandra Shil
8 The Asian Economic Crisis and Malaysia’s Responses:
Implications for the Banking Sector...................................................... 157
Balakrishnan Parasuraman, Beatrice Lim, Fumitaka Furuoka,
Catherine Jikunan, and Lo May Chiun
ix