Abstract
Recent financial crisis which has pushed almost whole world under recession, has also affected the developing economies in many ways. Since its starting, academicians were talking about its impact on world economies in different ways. Some of them were looking the crisis as an opportunity particularly for developing countries. India and China are emerging as two most prominent face of developing economies, and it may have been an opportunity for them to strengthen their global order among the economies of world. Subprime crisis of US financial system has badly affected the US economy and weaken its position. It has been said that balance of payment position of U.S. economy is in very bad shape, and if china wish it can destabilize the U.S. economy. It has also been said that U.S. currency ($) may not enjoy the position (as international currency) and credit worthiness which it has earlier. It could have an opportunity to make a multi-polar world. But happenings of the post recession period shows that nothing much have changed, and U.S. economy almost continued its status as it was in pre crisis period. Present paper will be normative analysis to understand the politics and economics of world originations and institutions those have worked hard and fast to save the U.S. economy. It will also be attempted to understand the factors those have pushed the economies like India in double dip recession. Is there any role of international politics and world organizations in this pathetic situation, when it is being claimed that it is because of policy paralysis?
Highlights
Since starting of US financial crisis and its impact on US economy as well as on the rest of world, academicians were comparing it with great depression of 1929
Subprime crisis had badly affected to US financial system, which is evident in almost all the fundamental parameters of financial system viz. non-performing assets (NPA), capital to risk-weighted asset ratio (CRAR), and return on assets (ROA)
It has created a situation like great depression of 1929, and people were expecting that it may change the global order of economies
Summary
Since starting of US financial crisis and its impact on US economy as well as on the rest of world, academicians were comparing it with great depression of 1929. This, when US economy is showing the sign of recovery and positive growth rate; developing countries like India are facing the problem of double dip recession In this context the relevant question which arise is how come the economic position of US economy remain intact even after facing very severe financial crisis and why weakened fundamentals of US economy has not affected to its currency ($)? Lastly is there any role of international politics and world organisations in the double dip recession of Indian economy?. Normative analysis to understand the role of international politics and world organisations to save the US economy and its currency is included in to fourth section It includes double dip recession problem of Indian economy.
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