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Dealing with the Contagion: China and India in the Aftermath of the Subprime Meltdown
Author(s) -
Sharma Shalendra D.
Publication year - 2009
Publication title -
china and world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.815
H-Index - 28
eISSN - 1749-124X
pISSN - 1671-2234
DOI - 10.1111/j.1749-124x.2009.01138.x
Subject(s) - china , spillover effect , global recession , subprime crisis , recession , financial crisis , economics , emerging markets , financial system , development economics , business , international economics , political science , finance , keynesian economics , macroeconomics , law
What began as a downturn in the US housing sector in the summer of 2007 had mushroomed into a global financial crisis by September 2008: the most severe since the 1930s. Developing countries, including China and India, at first seemingly sheltered from the worst of the turmoil, have not been immune to the contagion's spillover effects. What are China and India's precise vulnerabilities, and what can each do to better insulate their economies from the vagaries of global financial marker turmoil? Equally important, what long‐term strategies must each country adopt to make their economies more resilient to global market downturns?