The Way Out: Global Turmoil and Policy Recommendations

The world has been struggling with the economic and financial crisis for the last seven years and yet, in spite of all efforts several times we have so far witnessed hopes have been faded away. the level of financial integration of global markets, unprecedentedly high covariance between asset classes, interdependence of global systemically important financial institutions, and cross-border business models that has already created international or rather multinational companies and value chains aggravate the complexity of situation. Monetary policy being unsufficient to solve the problems, fiscal policy option deserves to be reconsidered. However the critical issue is the allocation of limited fiscal resources to promote growth in a sustainable way