Introduction
The financial crisis, which started in 2007 in the United States subprime market, developed into the most severe economic crisis since the Great Depression. Only an unprecedented fiscal and monetary stimulus in the developed world prevented an even more acute global recession, but the price tag for the crisis still remains a record-breaking high.
Even the staggering estimated costs understate the true price of the crisis, as they do not take into account output losses; moreover, they disregard the negative effects of the crisis on human and social development, and it will now take many more years to recover from the setback towards the achievement of the MDGs. While some developed countries and a number of large emerging market countries are now showing some signs of recovery, the effect of the crisis on developing countries has not yet fully unfolded. It is possible that the negative economic and social consequences of the crisis, for example on employment, will be felt for some time to come - especially given that a double-dip recession in the developed economies cannot be ruled out.
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