Question

Why was it claimed that the global economic crisis in 2008/09 would only be overcome if there was a co-ordinated policy response? Has such a co-ordinated response been forthcoming?

Answer 1

Coordination in economics refers to the coordination of all the evonomic activities of the economic sector to get a higher economic value. The 2008-09 financial crisis was considered the worst after the great depression of 1930. It was claimed that the economic crisis can be only overcomed with co ordinated efforts because the economy is not formed by one or two individuals rather it is formed by all the individuals, business entities etc. They help in the economic growth together by contributing their share to the economy. Thus it was seen that subprime mortgage crisis was leading to the crisis of the banks and thus financial support of the economy as whole was needed. The co ordinated response will always be forthcoming when such crisis hits again. And to prevent such crisis from happening the government made further policies to avoid it and have a better economic balance.