Economic recession

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I know very well that in an economy ,whenever there is a recession it will later lead to recovery and then boom. From what I understand, this economic recession is caused only because of Financial engineering like debt securitisation - leading to sub prime mess. Can anyone tell me how will India or even world for that matter come out of this recession??

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Vikram M.

Unemployed

504 Points Joined December 2007

The intial problem was that of a credit crunch. Simultaneous lowering of bank rates by the world's central banks has eased this. Currently governments are trying to boost public expenditure to tackle the recession.