Th year-long market turbulence, triggered by the US subprime mortgage crisis has erupted into a full-blown crisis prompting extraordinary actions by the US and other governments to stabilize financial markets. The market turmoil continues to create stress in money and capital markets, keeping credit spreads wide and borrowing costs highas well as curtailing the growth of credit in the US and Europe. In addition, the earlier spike in oil and food prices despite their recent correction-has generated such a strong headwind that growth has slowed across the world.