Abstract

The present financial crisis began in the summer of 2007 in the United States and spread virulently to other industrial countries in Europe and to markets beyond those that triggered the initial stress, the market for securitized sub-prime mortgages. As this paper is articulated the effect of the crisis on industrial growth has been devastating and may continue for several months ahead. The turmoil in the credit markets needs to recede to assess the extent of impact on world economies.