The introduction to this volume was first written in August 2008 with this opening paragraph: ‘The global economy is reeling under one of the severest crises since the Great Depression of the 1930s, with record high oil prices, the global food crisis and a financial crisis, reverberating across the globe. As the US economy slides deeper towards a full-fledged recession, precipitated by the sub-prime mortgage crisis, the ability of financial markets to play havoc with the “real” economy could not have been more apparent. While some commentators, especially those associated with the mainstream media, are still debating the extent of the downturn in the US economy and defending the innovative aspects of financial markets, inside the US, the grim reality seems to have hit home. The implications of the collapse of the housing boom, the associated collapse of major banks with high exposure in the housing markets, coupled with the financial burden of the Iraq war has meant rising unemployment, cut back in consumer spending and overall economic downturn, with no signs of reversal in sight. These events bring to the fore the myriad connections between the “real” and the “financial” – and point to the urgency of understanding these connections, especially in the present era of globalization and financial deregulation.’

Exactly a year later, with a series of bank collapses, as the developed economies grapple with stimulus/rescue packages and bail-out measures to counter the cascading impact of lay-offs and closures, the debate is not whether this is a recession but on how bad it will get before it starts to get better.