[01] Madhusudhanan S., Consultant, Government of India, New Delhi, India.

The recent Economic Crisis which was also called as “Sub Prime Crisis” or “Global Financial Crisis” has started way back at the end 2007. It was first started as “Sub Prime Crisis” in U.S.A. later spread all over the world as Global Financial Crisis”. The Global Crisis plays a vital role in the modern economics; which not only explained the importance of the policy framework in an economy, but, also showed us how far an economy potent to face or withstand a crisis. In this paper we are going to see what is mean by Sub Prime Crisis, how it started, its impacts on BRIC economics, Impact of crisis on the Indian Economy and Lessons to be learned. Any economy needs an appropriate Monetary Policy to withstand any financial turmoil. This paper ends with a concluding remark that Policy is meant for Growth and not for Impairment”.

Sub Prime Crisis, Global Financial Crisis, Monetary Policy, India

[01] U.S. Monetary Policy, ‘Imbalances’ and the Financial Crisis - Prepared for the Financial Crisis Inquiry Commission Forum, Washington, Feb. 26-27 2010, Pierre-Olivier Gourinchas U.C. Berkeley, NBER & CEPR [02] Global Financial Crisis: Causes, Consequences and India’s Prospects by RAKESH MOHAN Deputy Governor Reserve Bank of India at London Business School April 23, 2009 [03] Wikipedia – Sub Prime Mortgage Crisis [04] http://english.pravda.ru/business/finance/07-03-2008/104421-dream_homes-0/ [05] http://www.investopedia.com/articles/07/subprime-blame.asp [06] http://business.cch.com/images/banner/subprime.pdf [07] http://news.bbc.co.uk/2/hi/2817995.stm [08] US Financial Crisis: Causes and its impact on India; Debabrata Sutradhar, [09] Impact of US Subprime Crisis on Indian Economy; Dr. Kaushal Bhatt; Volume: 2; Issue: 1; October 2012. [10] http://www.bis.org/review/r120322b.pdf - Anand Sinha: Changing contours of global crisis – impact on the Indian economy; BIS central bankers’ speeches.