The world economy continues to be buffeted by the burgeoning downdraft of the financial crisis
and volatile commodity prices. As such, the outlook points to a major downturn for the global
economy, with growth falling to its slowest pace since the 2001–02 recession. However, authorities
around the world have taken further, massive, and increasingly coordinated corrective actions. The
central scenario in the World Economic Outlook anticipates that these will be successful in stabilizing

New Delhi, 28 Oct (Jayati Ghosh*) -- It is clear from the past few weeks
that the developing world is far from immune to the financial crisis
originating in the West. Stock prices in emerging markets have gone on
similar roller coaster rides to those in New York and Europe.

Indeed, they have shown such very high volatility, going sharply up and down
on a daily basis around an overall declining trend, that the pattern is
reminiscent of the behaviour of stock indices in 1929/30 at the start of the
Great Depression.