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| Abstract : |
| The impact of macroeconomic crisis and poverty can be hard to predict for most countries. the macroeconomic effects of crises, and on how these effects spread to different countries through contagion channels. However, there is a lack of information on the microeconomic repercussions of these crises, particularly for emerging market economies. India entered the last decade of the twentieth century with a severe macro-economic and balance of payments crisis. The period since about 1980 has seen macroeconomic crises and subsequent stabilization efforts in most low and middle income countries-countries with a high incidence of absolute poverty. there was also a drop in non-agricultural output per capita.1991-92 was a year of industrial stagnation. Possibly there were adverse effects on rural welfare of changes in the composition of public spending, the recent financial crisis has damaged the reputation of macroeconomics, largely for its inability to predict the impending financial and economic crisis. The aim of this article is to shed light on the challenges that face monetary and fiscal policies during crises periods. |
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