ISAS Working Papers

The impact of the economic crisis of 2008-09 was felt significantly in the economies of South Asia. Demand for exports and foreign investments fell in the real economy as well as in the financial markets. This led to a softening of domestic demand in the consumption sectors, leading to a slowdown in the growth of these economies. The economies in South Asia have now recovered and the problems of 2009 and 2010 have been left behind. Policy interventions that were adopted in the different countries varied not just due to differing macroeconomic considerations, but also because of the political economy considerations in these countries. This paper attempts to examine these interventions, their causes and effects.