The evaluation of negative effects of credit crunch

THE EVALUATION OF NEGATIVE EFFECTS OF CREDIT CRUNCH AND,HOW IT WAS DEALT WITH? A financial crisis was precipitated in what has come to be known as the credit crunch/ economic meltdown. Unlike the great depression, the current credit crunch came abruptly catching the world unawares. The global nature and the measures taken to address the crisis have been baffling, thus demanding concerted international intervention. Even more subtle are the implications of the current credit crunch on developing countries whose economies never experienced the great depression but now find themselves entangled in the global economy. This paper aims to critically evaluate, illustrate the various strategies undertaken by the leading economies such as the United States and the United Kingdom as well as the supranational entity the International Monetary Fund and European Central Bank to face negative effects of the credit crunch. Their fiscal, monetary and legal policies are to be reviewed. The next section shall review the causes and roots of the credit crunch while the major sections will deal with how the said entities have solved the problems.