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The global financial and economic crisis : transmission channels and policy response in the Arab world (Inglês)

Global and economic aspects of the crisis: two aspects of the current crisis are important to stress. The first is its global nature. As you know, this crisis started last year in the US and European financial markets but spread quickly to developing countries. The second is its economic impact. Before the crisis erupted, many countries, and many developing countries in particular, were already suffering from the impact of very substantial food and fuel price increases, which had translated into higher inflation and current account deficits. As a result, the financial crisis has quickly become an economic crisis, and already many developed countries are in recession, and developing countries are seeing weakening growth.

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