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The World Economy

Financial crises and global prospects

Published online by Cambridge University Press:  26 March 2020

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Extract

A financial crisis, rooted in US mortgage defaults, has been building for several years. Its effects have seriously damaged the prospects for the global economy, and have particularly serious consequences for the English speaking world. Unsound lending permitted by poor regulation and worsened by lax bankruptcy laws has led the US, and potentially the rest of the OECD, to the brink of a large-scale recession. The scale of the potential slowdown depends upon the scale of losses to the banking system and their impacts on the ability of the banking system to lend.

Type
Articles
Information
National Institute Economic Review , Volume 204 , April 2008 , pp. 9 - 14
Copyright
Copyright © 2008 National Institute of Economic and Social Research

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