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Source: World Economic Outlook Reports
According to the International Monetary Fund, much of the world, including Europe, the United States and Japan, is currently in or close to recession. The crisis started with the collapse of subprime mortgages in the U.S. and quickly spread to financial markets around the globe.
The BBC reports that Japan is suffering from falling exports and weakening consumer demand at home. European economies are also predicted to undergo a period of weak or negative growth and in the U.S., 750,000 jobs were lost this year. Hungary, Iceland, Ukraine and Pakistan are all seeking emergency relief from the IMF.
Central banks have been very aggressive in helping to shore up flagging financial institutions either through recapitalizations or buying up assets of private firms as seen in the U.S. with the $85 billion government rescue of AIG.
This month CIAO examines the global financial crisis.
Freddie Mac and Fannie Mae: An Exit Strategy for the Taxpayer
Asset Bubbles and Their Consequences
The US Housing Bust and Soaring Oil Prices: What next for the world economy?
Stock Prices and Monetary Policy
Can America Still Lead in the Global Economy?
Capitalism in Crisis (Council on Foreign Relations)
Global Financial Crisis (Financial Times Multimedia)
Global Financial Crisis (BBC News)
Finance Chiefs Meet On Global Economic Crisis (NPR audio)
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