Economic Recession Triggered By World Financial Imbalance  Lord Meghnad Desai |
According to noted economist Lord Meghnad Desai, the financial imbalance of world’s economy is the major factor that triggered the global economic crises.
The message of Desai, Professor emeritus of London School of Economics, was read out at the brainstorming session organised by the Global Economic Forum (GEF) in Noida on Monday on After-effects of financial meltdown: World economy five years ahead.
Desai was to attend the event and sum up the discussions in which a number of experts participated but could not. He said the current economic crisis was different from what the world faced in 1980 or 1997-98. This time the financial system has collapsed, he said.
"The present crisis is different... because it is a double combination of a breakdown in the financial system and a recession in the real economy," said Desai.
"The global financial architecture needs reform and the IMF (International Monetary Fund) may need to be restructured to achieve this. Then any financial surpluses will be recycled not via the US but via the IMF."
