Make your work easier and more efficient installing the rrojasdatabank  toolbar ( you can customize it ) in your browser. 
Counter visits from more than 160  countries and 1400 universities (details)

The political economy of development
This academic site promotes excellence in teaching and researching economics and development, and the advancing of describing, understanding, explaining and theorizing.
About us- Castellano- Français - Dedication
Home- Themes- Reports- Statistics/Search- Lecture notes/News- People's Century- Puro Chile- Mapuche

Search: Global Financial and Economic Crisis - Editor: Róbinson RojasCastellano - Français

The International Monetary Fund on the global financial and economic crisis 2008-2009
From the International Monetary Fund - January 28, 2009

World Economic Outlook Update 2009
Global Economic Slump Challenges Policies

PDF version (533kb)

World growth is projected to fall to ½ percent in 2009, its lowest rate since World War II. Despite wide-ranging policy actions, financial strains remain acute, pulling down the real economy. A sustained economic recovery will not be possible until the financial sector's functionality is restored and credit markets are unclogged. For this purpose, new policy initiatives are needed to produce credible loan loss recognition; sort financial companies according to their medium-run viability; and provide public support to viable institutions by injecting capital and carving out bad assets. Monetary and fiscal policies need to become even more supportive of aggregate demand and sustain this stance over the foreseeable future, while developing strategies to ensure long-term fiscal sustainability. Moreover, international cooperation will be critical in designing and implementing these policies.
More updates here

From the International Monetary Fund:
World Economic Outlook Reports
Regional Economic Outlook Reports
Global Financial Stability Reports

From IMF World Economic Outlook Update - January 28, 2009

On the Global Financial and Economic Crisis
From the International Monetary Fund
Coping with the Crisis: Policy Options for Emerging Market Countries
Prepared by the Research Department
Atish R. Ghosh, Marcos Chamon, Christopher Crowe, Jun I. Kim, and Jonathan D. Ostry
April 23, 2009

Executive Summary
I. Introduction and Overview
II. Initial Conditions and the External Financing Constraint
III. Insolvencies, Debt Overhangs, and Workouts
IV. Macroeconomic Policies:
A. Monetary Policy
B. Fiscal Policy
V. Conclusions
World Economic and Financial Surveys
Global Financial Stability Report
Responding to the Financial Crisis and Measuring Systemic Risks - April 2009    also here

Systemic risks remain high and the adverse feedback loop between the financial system and the real economy has yet to be arrested, despite the wide range of policy actions and some limited improvement in market functioning. Further effective government action—particularly geared toward cleansing balance sheets and strengthening institutions—will be required to stabilize the global financial system and to provide the foundation for a sustainable economic recovery. The banking system needs additional equity to absorb further writedowns as credit deteriorates, and risks are broadening to encompass nonbank institutions. The crisis has spread to emerging markets, with the collapse of international financing, posing challenges to corporates, households, and banks as well as raising sovereign risk. The global policy response, including the IMF’s enhanced lending framework, should help to mitigate crisis risks from deepening. There remains considerable scope for further public commitments in larger economies, but extensive provision of financing and the transfer of balance sheet risk from the private to the public sector have increased tail risks for certain mature market sovereigns.
World Economic Outlook April 2009
  Chapter 1. Global Prospects and Policies
  How Did Things Get So Bad, So Fast?
Short-Term Prospects Are Precarious
Gauging Risks for Deflation
Sovereigns under Stress
Exploring the Downside
Medium-Term Prospects beyond the Crisis
Policies to End the Crisis while Paving the Way to Sustained Recovery
Appendix 1.1. Commodity Market Developments and Prospects
Appendix 1.2. Fan Chart for Global Growth
Appendix 1.3. Assumptions behind the Downside Scenario
Chapter 2. Country and Regional Perspectives
  The United States Is Grappling with the Financial Core of the Crisis
Asia Is Struggling to Rebalance Growth from External to Domestic Sources
Europe Is Searching for a Coherent Policy Response
The CIS Economies Are Suffering a Triple Blow
Other Advanced Economies Are Dealing with Adverse Terms-of-Trade Shocks
Latin America and the Caribbean Face Growing Pressures
Middle Eastern Economies Are Buffering Global Shocks
Hard-Won Economic Gains in Africa Are Being Threatened
Chapter 3. From Recession to Recovery: How Soon and How Strong?
  Business Cycles in the Advanced Economies
Does the Cause of a Downturn Affect the Shape of the Cycle?
Can Policies Play a Useful Countercyclical Role?
Lessons for the Current Recession and Prospects for Recovery
Appendix 3.1. Data Sources and Methodologies
Chapter 4. How Linkages Fuel the Fire: The Transmission of Financial Stress from Advanced to Emerging Economies
  Measuring Financial Stress
Links between Advanced and Emerging Economies
The Transmission of Financial Stress: An Overall Analysis
Lessons from Previous Advanced Economy Banking Crises
Implications for the Current Crisis
Which Policies Can Help?
Appendix 4.1. A Financial Stress Index for Emerging Economies
Appendix 4.2. Financial Stress in Emerging Economies: Econometric Analysis
  Annex: IMF Executive Board Discussion of the Outlook, April 2009


From the IMF
Addressing the Financial Crisis

IMF head Dominique Strauss-Kahn said that advanced countries must now focus on getting their economies moving again by implementing the stimulus packages they have announced, as well as cleaning up their financial sectors.
From the IMF - March 2009
The world in crisis

Reshaping the Global Economy

Jean Pisani-Ferry and Indhira Santos
The crisis and the national responses to it have started to reshape the global economy and shift the balance between the political and economic forces at play in the process of globalization. The drivers of the recent globalization wave are being undermined, and the spirit of protectionism has reemerged.

Deep Impact

David Hofman, Roberto Guimaraes, Alessandro Zanello, Isabell Adenauer, Norbert Funke, Charles Amo Yartey, and Siobhán McPhee
As world trade slumps, steel producer Ukraine and consumer electronics manufacturer Singapore face shriveling demand and drooping prices for their output. At the same time, cotton exporter Burkina Faso's production reforms encounter fading textile buyers, and hi-tech nursery Ireland fails to keep its migrant labor employed.

Trade Finance Stumbles

Thomas Dorsey
The cost of trade finance has risen rapidly, while in some cases its availability has fallen, especially in emerging markets. According to a recent survey, banks anticipate these trends to continue in 2009.


The IMF point of view on the current world economic crisis
December 2008
Finance $ Development
World Economy Under Stress
Cracks in the System:
Repairing the Damaged Global Economy
Olivier Blanchard
The global economy is facing its worst crisis in 60 years, triggering fears of a long, deep recession. The task ahead is to design new rules and institutions to reduce systemic risks without stifling innovation.
IMF Survey Magazine

9 June 2005
Capitalist Economic Terrorism

Note by Róbinson Rojas: Free-market fundamentalism, which can be described as capitalist economic terrorism, is creating a world with a small bunch of super rich and a big majority just surviving on their income. United States is a telling case study of this. What began with  the Reagan Administration is reaching obscene features with the Bush Administration. Statistics show that "for every additional dollar earned by the bottom 90 percent of the population between 1950 and 1970, those in the top 0.01 percent earned an additional $162. That gap has since skyrocketed. For every additional dollar earned by the bottom 90 percent between 1990 and 2002, each taxpayer in that top bracket brought in an extra $18,000." The New York Times is publishing a special section ("Class Matters"), from which I select here some important texts. They show how capitalist economic terrorism (free-market fundamentalism) can disjoint a society. The winners are the ones who have at their service a political class serving their interests by unleashing political and economic terrorism (otherwise known as globalization) all over planet Earth. They are building a larger U.S. empire. Modern Caligulas like Bush et al are the top layer of that political class.

The Bush Economy (7 June 2005)
Richest Are Leaving Even the Rich Far Behind (5 June 2005)
Crushing Upward Mobility (7 June 2005)
Class Matters. A special section
The Mobility Myth (6 June 2005)


The New York Times - 10 June 2005
Losing Our Country
By Paul Krugman
"The middle-class society I grew up in no longer exists. Working families have seen little if any progress over the past 30 years. Adjusted for inflation, the income of the median family doubled between 1947 and 1973. But it rose only 22 percent from 1973 to 2003, and much of that gain was the result of wives' entering the paid labor force or working longer hours, not rising wages.
But the wealthy have done very well indeed. Since 1973 the average income of the top 1 percent of Americans has doubled, and the income of the top 0.1 percent has tripled."

Center for Economic and Policy Research
The recent announcement that the U.S. has officially been in a recession since December 2007 and the latest employment data showing record job losses in November are but two indicators of the weakness in the economy. As a resource for a deeper understanding of the health of the economy, CEPR has created an Economic Crisis section featuring analysis of the root causes of the economic down-turn as well as policy suggestions, including a letter from over 375 economists and three nobel laureates pushing for a second stimulus package, to help get the economy back on track.


Róbinson Rojas (1997) on
Basic knowledge on economics
Notes designed for students wanting to understand the basic tenets of textbook economics ( capitalist economics, that is), without calculus, which is utilised as a disguise to justify a barbaric economic system leading to social exclusion and waste of human and material resources. The capitalist economic problem: what to produce, how to produce, for whom to produce. Resource allocation: alternative approaches, the free market versus central planning. The meaning of "resource allocation" and the main alternative methods of allocating resources.
Concepts for Review: Economic resources, resource allocation, production possibility curves, supply, demand, competition, profitability and the free market, central planning and bureaucracy, factors of production,  distribution of income, factor mobility

- Sustainable development in a globalized economy? The odds. 1999
- Sustainable development in a globalized economy. 1997
- Making sense of development studies
- Notes on the philosophy of the capitalist system
- Notes on economics: assuming scarcity
- Notes on economics: about obscenities, poverty and inequality
- Notes on structural adjustment programmes
- Agenda 21 revisited (notes)
- 15 years of monetarism in Latin America: time to scream
- Latin America: a failed industrial revolution
- Latin America: the making of a fractured society
- Latin America: a dependent mode of production
- The 'adjustment' of the world economy
- The transnational corporate system in the late 1990s
- A market-friendly strategy for development
- Notes on agribusiness in the 1990s
- Transnational corporations in developing countries
- Latin America: blockages to development
- Development Studies: Researching for the big bosses?
- International capital and intellectual dishonesty

What is post-colonial thinking?

On Development Economics
The Future of Development Economics
The New Economy in Development
The Need to Rethink Development Economics
Development Economics
Economic Literacy
Basic knowledge on economics

RRojas Databank is a member of Development Gateway hosted by The World Bank

Education for Sustainability
Postgraduate courses on
Environment and
Development Education at
London South Bank University

- Part time distance learning
- Full time at the University

- Come visit us at

- Lecture notes
- Notes and papers

- Global Value Chains
- Integrated International

- International Division of

- Transnational Corporations
- The Triad ( U.S.A, Japan, E.U.)

- Dependency Theory
- Planning for Development
- The Developmental State
- The Neo-liberal State
- Development Economics
- The future of development

- Foreign Direct Investment
- Factor Payments to Abroad
- The New Economy in

- International Trade

Back to Global Economic Prospects for Develeping Countries

--World Investment Reports
---(the complete series)

--World Investment Reports
---(selected statistics)

-- Planning for Development
UNCTAD areas of work:
Globalization and Development
Development of Africa
Least Developed Countries
Landlocked Developing Countries
Small Island Developing States
International Trade and

Services Infrastructure
Investment, Technology and
Enterprise Development

The following databases on-line are available:
Commodity Price Statistics
Foreign Direct Investment
Handbook of Statistics
ICT Statistics
Millennium Indicators

Digital Library:
-- News
-- Main publications
-- UNCTAD Series
-- Basic documents
-- Issues in Brief
-- Newsletters
-- Statistical databases
-- Globalization and
----- Development Strategies

-- Economic Development in
----- Africa

-- International trade
-- Dispute Settlement - Course
----- Modules

-- Investment, Technology and
-----Enterprise Development

-- Services Infrastructure for
--- Development and Trade
----- Efficiency

-- Monographs on Port
----- Management

-- Technical Cooperation
-- Discussion papers
-- G-24 Discussion papers
-- Prebisch Lectures
-- Transnational Corporations
----- Journal

-- Publications Survey 2006-

World indicators on the environment

World Energy Statistics - Time Series

Economic inequality

Other related themes:
- Aid
- Bureaucracy
- Debt
- Decentralization
- Dependency theory
- Development
- Development Economics
- Economic Policies
- Employment/Unemployment
- Foreign Direct Investment
- Gender
- Human Rights
- Human Development
- Hunger
- Inequality/social exclusion
- Informal sector
- Labour Market
- Microfinance
- Migration
- Poverty
- Privatization
- State/Civil Society/

- Sustainable Development
- Transnational Corporations
- Urbanization

- Complete list of development themes


Rapid Spread of Crisis Reflects Close Global Economic Ties

By Stephan Danninger, Ravi Balakrishnan, Selim Elkdag, and Irina Tytell - 
IMF Research Department

April 16, 2009

  • IMF research shows financial stress can spread rapidly to emerging economies
  • Financial links with advanced economies are a key channel
  • Coordinated policy response by advanced, emerging economies needed

Emerging economies are now so closely integrated with advanced economies that financial stress transmits rapidly and forcefully, with financial linkages a key channel of transmission, according to new IMF research.

But the decline in capital flows to emerging economies following a crisis may be protracted, given the solvency problems faced by banks in the major industrialized economies that provide significant financing to emerging markets.

Chapter 4 of the April 2009 World Economic Outlook (WEO), entitled “How Linkages Fuel the Fire: The Transmission of Financial Stress from Advanced to Emerging Economies,” studies how financial stress is transmitted from advanced to emerging economies. New WEO economic forecasts are scheduled for release April 22.

The chapter presents a new financial stress index for emerging economies, building on a similar index introduced in the October 2008 World Economic Outlook for advanced economies. The new index measures the intensity of stress in different parts of the financial sector (equity markets, exchange markets, and the banking sector) and will be available for 18 emerging economies on a monthly basis since 1997. The index will be made available on the IMF website after the IMF Spring Meetings.

How large is financial stress?

The current financial crisis in advanced economies is unique in its depth, breadth, and impact. It has rapidly engulfed all parts of the global financial system (banks, securities, and exchange markets) and has already lasted longer than any systemic stress episode since the 1980s.

By the end of 2008 virtually all advanced economies were experiencing financial stress at crisis levels. As a result, financial stress in emerging economies also reached unprecedented levels. It spread quickly to all major emerging regions and multiplied through all parts of the financial sector. On average, the intensity of stress surpassed levels seen during the Asian crisis (see Chart 1).

How does stress get transmitted?

According to our research, stress in emerging economies moves almost one-for-one with stress in advanced economies. The transmission is rapid and occurs within one or two months after advanced economies experience financial stress. But there is significant cross-country variation in the transmission. Empirical analysis shows that the pass-through of stress is stronger in emerging economies with closer financial linkages (that is, banking, portfolio, and foreign direct investment) with advanced economies.

During the most recent crisis, bank lending linkages appear to have been the main driver of stress transmission. Western European banks have dominated bank lending flows to emerging economies since the mid-1990s. By end-2007, their assets in emerging economies reached 10 percent of advanced-economy GDP, compared to a combined 2.5 percent of GDP for Canadian, Japanese, and U.S. banks.

Emerging Europe stands out as the main recipient of bank lending flows. Foreign claims in terms of destination GDP are the highest among emerging regions (see Chart 2). The intensity of these links helps explain why the global financial crisis, which is centered on banks, has such a virulent impact on various emerging European countries.

What is the impact on capital flows?

Not all systemic financial crises in advanced economies have led to protracted reductions in capital flows to emerging economies. But historical evidence suggests that a quick recovery may not be the most likely scenario this time around. The key role played by banks in the current crisis presages a drawn-out decline in capital flows to emerging economies.

Evidence from past episodes of systemic banking stress in advanced economies (the Latin American debt crisis of the early 1980s and the Japanese banking crisis of the 1990s) shows that the decline in capital flows tends to be sizeable and long lasting. Since then, banking globalization has continued and risks of large scale de-leveraging associated with common lender effects have risen. Given their large share of external financing through banks, a number of emerging European economies might be heavily affected by a drought of capital inflows.

What can policymakers do?

The shock to financial systems in advanced and emerging economies is too large to be dealt with on an individual basis. Strengthening current account and fiscal balances can help emerging economies during periods of global financial calm. However, during a major global financial shock reducing country vulnerabilities alone cannot insulate emerging economies from the transmission of stress.

Instead, a coordinated policy response by advanced and emerging economies is required to prevent further escalation and spreading of financial stress. Such a response needs to involve many elements, including access to external funding for emerging economies via official channels, support for advanced economy banks with large presence in emerging economies, and coordination between home and host country financial supervisors.

While achieving financial stability should be the immediate goal, policymakers ultimately need to work toward strengthening multilateral insurance systems: this would allow emerging economies to reap the benefits of international integration while limiting the potential risks from greater external financial integration.

The commitments to expand the IMF’s resources and the Fund’s new Flexible Credit Line and reformed conditionality framework should be helpful in this context.

Comments on this article should be sent to

Puro Chile la memoria del pueblo
Proyecto para el Primer Siglo Popular
Crisis financiera mundial

Director: Róbinson Rojas


Puro Chile la mémoire du peuple
Projet pour le Premier Siècle Populaire
Crise Economique Mondiale

Editeur: Róbinson Rojas