Global Economic Meltdown: Causes, Consequences and Responses

Abstract

This study looks at the knotty issue of the current global economic meltdown, capturing the causes, consequences and responses, and raising the issues to widen the horizon of the debate. Proper analysis of the antecedents, the tempo and the dynamics of the
current global crisis points to the age-long Business Cycle Theory, which says that following on the heels of booms is a potential to derail into recession and bursts. Therefore, it is opined that behind the current economic crisis is the excessive boom of the US mortgage market. The major hit of the crisis in the Nigerian economy is the spot where the boom is most evident - the Nigerian Stock Exchange market. Booms need to be cautiously managed, to minimize the impact of subsequent recession.