The Distributional Impact of the Crisis

Authors

  • Jomo Kwame Sundaram

Abstract

In analyzing the effects of the crisis on distribution, the full impacts of financialization and the larger picture must be integrated and seen in a global and historical context. After the end of Bretton Woods in 1971, no alternative system for regulating exchange rates was put in place. This rendered international economic governance more unmanageable by leaving exchange rate movements to financial markets. This situation was compounded by capital account liberalization and rapid financial globalization. While financial globalization was expected to increase both growth and stability, it has instead led to greater economic fragility in general. In addition, financial globalization has not favored most developing countries, in particular the poorer and least developed ones. There are now fewer resources for the needy; fiscal space has been reduced substantially; and policy space has tightened in developing countries. The lack of a system for coordination of global recovery has allowed a number of detrimental effects of the crisis to become broadly manifest. The distributional effects of these changes vary, and depend on specific conditions and policy responses.

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Published

2016-03-01

How to Cite

Sundaram, J. K. (2016). The Distributional Impact of the Crisis. The New School Economic Review, 4(1), 92–105. Retrieved from https://nsereview.org/index.php/NSER/article/view/34

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Section

Transcripts of Lectures, Seminars, and Panel Discussions