GLOBAL CRISIS AND COLLECTIVE INTERVENTION BY GOVERNMENTS.

NOTE:- THE SOURCE OF DISCUSSION IS BASED ON ECONOMIC SURVEY AND BUDGET OF INDIA, AND VARIOUS REPORTS AVAILABLE ON INTERNET.

GLOBAL CRISIS AND COLLECTIVE INTERVENTION BY GOVERNMENTS.
One would have in mind to know the result that governments' timely interventions would be fruitful or not with the line of action as expected by many expertise and common people.
The govt. the level intervention was, at first avoiding any kind of trepidation but also use collective wisdom.

• At govt. the level itself, of that, being "collective and concord" driven unidirectional intervention.
• must distinguish about direct and immediate impact, short, medium, and long term impact, addressing structural issues of the global financial system to prevent their occurrence again in the future.
• Intervention would be short term, as medicine but need addressing the issues of the global financial system combinedly, as part of larger reform packages.

Depending on impact level different govt could choose on the immediate intervention either as the "Bailout package", which is providing govt. finances, capital infusion, or as "Stimulus package"  driving around fiscal loosening. The US govt. resorted to bailout package through capital infusion, also took over some of the institutions, relaxed its monetary stance by going for "Quantitative easing" and bringing down interest rates to near-zero to reinvigorate growth and output of the US economy.
Globalization has given a new version to economies to go forward. economic integration has run very deep. the problem of the global economy is not globalized but its perception. there is a fixed limit to take away for every economy, the present problem of today, like all other problems, has to be understood in the right perspective and then resolved collectively. the crisis was not because of globalization and if so it is the biggest mistake or still a bigger blunder would be to revert back to protectionism in the future, hence keep it with the good effort so that all positive outcomes lie with you.