Global Financial Crisis: Impact, Challenges & Way-out‪.‬

Earlier Crises Growth of real and financial sectors is essential for economic development. The financial sector has claimed an ever-growing share of the nations' income over the past generation. The financial sector comprises institutions which promote savings on the one side and investment on the other and also includes facilitators like, stock exchanges and merchant bankers. Any imbalance in the growth of the two sectors is a cause of concern. Over the years, the financial sector has gained prominence and is a prime mover for every economy. Financial crisis, in a way, is a reflection of the imbalance between the growths of the two sectors. The present study gives, in brief, an overview of the financial crises over the years; and the origin and features of the current crisis. Way-out measures- both stimulus packages and structural policy processes-are discussed. The paper also highlights the concern arising from excessive enthusiasm of the financial sector as compared to that of the real sector and examines whether the 'V' shape recovery over the short period is sustainable.