A Macroeconomic Perspective on Crisis Recovery

Abstract

The paper discusses the manner in which advanced and emerging countries are able to recover from the most acute phase of the 2008 International Financial Crisis. Due to sound fiscal and monetary policies, certain emerging economies (especially emerging Asia) are expected to account for almost half of the global economic growth in the upcoming period. The progress made by the reformation of the fiscal sector must become a top priority both for emerging and developed economies. Developed and underdeveloped economies alike still have great difficulties to face, as the financial crisis has magnified any encountered initial imbalance, slowing down a possible recovery. Nonetheless they still play in important part in boosting demand and trade in the years to come.