Macroeconomic Impact of 2008 Financial Crisis on Countries by Income Groups

Abstract

<p>The aim of this study is to analyze the effect of the US mortgage crisis on macroeconomic indicators by considering classification of countries by income groups. Using the data of World Development Indicators prepared by World Bank, countries are classified in four groups respectively low-income economies, lower-middle-income and upper-middle-income and high-income economies. For these groups of countries the data of macroeconomic indicators such as economic growth, employment, inflation, export, from 2005 to 2015 are examined. Obtained results show that group of high income countries have not just been heavily affected from 2008 crisis, but also facing problem of weak growth and risk of deflation, whereas middle income economies have been affected from declining commod­ity prices. Present conditions are required to initiate proactive fiscal and monetary policies in the world.</p>