NAVIGATING TURMOIL: COMPARATIVE EFFECTS OF THE GLOBAL FINANCIAL CRISIS ON THE ECONOMIES OF INDIA AND JAPAN

Sanjay Mishra

Authors

Sanjay Mishra Research Scholar, Department of Economics, University of Lucknow, Lucknow, Uttar Pradesh, India

Keywords:

Global Financial Crisis, economic impact, policy response

Abstract

This study investigates the divergent impacts of the Global Financial Crisis (GFC) on the economies of India and Japan, shedding light on the varying strategies employed by these two nations to navigate through the turmoil. Analyzing a comprehensive set of economic indicators, policy responses, and structural factors, we offer a comparative analysis of how India and Japan weathered the GFC's challenges. While Japan's export-dependent economy faced a severe recession due to its close integration with global markets, India exhibited a more resilient performance attributed to its domestic demand-driven growth model. Our research underscores the significance of policy flexibility, financial system resilience, and trade diversification in determining a nation's resilience to external shocks. This study not only advances our understanding of the GFC's implications but also provides valuable insights for crafting effective crisis management strategies.

References

Acharya V. V. (2009), ‚A Bird-Eye View. The Financial Crisis of 2007-2009: Causes and Remedies‛, Acharya, V. V.; Richardson, M. (eds.), Restoring Financial Stability. How to Repair a Failed System, Hoboken N.J., P-1-56.

Allen F., Carletti E., and Gale D. (2009), ‚Interbank Market Liquidity and Central Bank Intervention‛, Journal of Monetary Economics, 56(5), P-639-652.

Bank for International Settlements (BIS) 2009, ‚An Assessment of Financial Sector Rescue Programmes‛, BIS Papers 48 Geneva, Switzerland: BIS.

Bank of Japan (2009a), Financial Markets Report, Tokyo, August.

Bhatt R. K. (2011), ‚Recent Global Recession and Indian Economy: An Analysis‛, International Journal of Trade, Economics and Finance, Vol. 2, No. 3, June 2011.

Bhatt, R. (2011), ‚Recent Global Meltdown and its Impact on Indian Economy‛, IPEDR (7), P. 93-97.

Bhunia, A. (2010), ‚Global Financial Crisis and Its Impact on India‛, Southern Economist, Vol.49, No.1, May 01, 2010, P-12-14.

Bosworth, B. and A. Flaaen 2009, ‚America’s Financial Crisis: The End of An Era‛, A paper presented at the ADBI conference ‚Global Financial and Economic Crisis: Impacts, Lessons, and Growth Rebalancing,‛ Tokyo, 22–23 April.