Momin Ahsan Section C 20U03005

Q1: Has the 2008 crisis reshaped the global perception of economic growth and
macroeconomic instability? What is the post 2008 crisis sustainable growth model composed of
and what are the challenges in the post crisis era?
Ans: The financial crisis of 2008 had reformed the global view of economic growth and macroeconomic
instability in deep ways. It had exploded the image of constant economic growth and exposed the risks
that were linked with unrestricted financial speculation and leverage. The Outcome was that it had led
towards the revaluation of the traditional economic models and a recall for a better resilience and stability
in the face of economic shocks. The period of post 2008 was regarding the growing emphasis on
sustainable growth models that had prioritized the long-term stability, inclusivity, and environmental
sustainability over short-term gains. The Components of Post-Crisis Sustainable Growth Model were the
following:

1. Diversification

2. Investment in human capital

3. Environmental Sustainability

4. Financial Regulation

5. Inclusive Growth

The Challenges of the Post Era 2008 were the Following:

1. Structural Weaknesses

2. Inequality

3. Climate Change

4. Geopolitical Tensions

5. Technological Disruptions