Government Role During the Global Financial Crisis (original) (raw)
Related papers
Government Role Durıng The Global Fınancıal Crısıs
2013
In this study we investigated government hand in the Global Financial Crisis. Before, during and after crisis government attempted to solve and avoid the turmoil. But did he succeed? Beginning with low interest rates set by FED, US government political pressures to enable more Americans to buy homes, unrestrained financial system despite of regulations and fines, human greedy were the main reasons for Great Recession. More than 30 years of deregulation and reliance on self-regulation by financial institutions was the one big reason for crisis. Besides showing the stages crisis passed, the paper also examines penalties government gave to the financial intermediaries for breaking law in past related to crisis. Showing the emerging process of crisis, the article mainly restricted on US economy-where was the epicenter of problem-and government, while the U.S. financial system stumbles, it may take the rest of the world down with it. The actuality of the topic is that it was also a social crisis because, unemployment in US had reached to 50 millions which means they also lost their social insurances, and 16 million families had lost their homes. Several corporations bankrupted, in spite of more than these were saved by government. While financial crisis turned into social and economic turmoil it became government prior issue to solve.
Global Crisis and Government Intervention
Regional Economic Integration and the Global Financial System
The authors look at the three major global crises; they see state intervention in causes and solutions. The causes of the crisis were deregulation. To resolve the crises, again regulation policies have been applied. Although the causes of the crises seem to have been regulation policies, in fact, the main problem was homo economicus. In conclusion, the authors see that when we analyze the reasons for the three big global crises and the ways to overcome crisis, the reasons are the unethical and irrational behavior of homo economicus. That is why homo economicus must be constrained and obey constitutional financial and monetary rules.
Over the centuries, have been many financial crises, which occurred in cycle shaken the world's largest economies. In general, crises are more or less similar in appearance, the appear occasionally. The same case is also the recent financial crisis of 2008, known as the global financial crisis, considered biggest crisis since 1930s, which create financial, economic and social problems. Financial and economic crisis later was transformed into a social and political crisis. Macroeconomic indicators analysis shows that the economic crisis has interrupted the positive trend of development. The most important lessons that the financial and economic experts and the biggest political leaders of the world took out of this unprecedented crisis, is that the “phenomenon of globalization” already is a constant challenge, whose economies of countries should adopt and also create mechanisms to deal with it. Through this paper, referring to scientific literature I will analyze what are the main causes of the financial crisis and what are their effects on the economy. Will be treated consistently as well as political trilemma, which shows the need of sacrificing one of the three pillars of Trilemma as: economic globalization, political democracy and national sovereignty who are reciprocally incompatible with one another.
FINANCIAL CRISIS AND ECONOMIC COLLAPSE
Journal of Law and Politics JLP, IBU, 2023
The beginning of the world financial crisis from 2008 until today, continued with the global health pandemic Corona 19, caused a financial collapse at the world level and caused a large percentage of unemployment and indebtedness of the Government to the International Monetary Fund and the World Bank. This short scientific paper will point out all the phenomena and facts in the financial world forwarded with legal norms and regulations.
Role of Government Financial Crisis
Countries are going bankrupt because of poor financial and accounting management. The financial and accounting management of the public sector is different from that of the private sector in every aspect. It is risky to equalize or generalize it to that of the private sector as it leads to the individualization of public money. Indeed, the financial crisis in the public sector is the result of the equalization or generalization of public finance, which leads to its individualization.
The Comprehension of the Financial Crises
International Journal of Sciences: Basic and Applied Research, 2015
Financial crises had become some of the worst nightmares for a lot of politicians and economist which led a lot of researchers to analyze their implications. In this paper the authors approach fundamentally in describing the types of the financial crises, their characteristics and normally the repercussions that they left behind. If the policy decision makers have more information about the crises, they can be more careful in planning, designing, and implementing some crucial measures in the economic policy. Therefore the efficient predictions along with the experience of a lot of other countries exposed on such economic situations are essential in order to achieve success in sustaining it.
The Global Financial Crisis During the Years 2008 and 2009
Journal of Business Administration Research, 2023
During a global financial crisis, the exchange rate reacts to economic conditions in a volatile manner. During the financial crisis between 2008 and 2009, the exchange rate incurred losses of individual countries' overall currency value. The losses occurred because of the lack of confidence in investors. The losses affected the banking and financial institutions, collapsing the housing market. The purpose was to explore existing research on the great financial crisis that affected the world and compare countries with the largest economic influences in the world. The study is grounded in the fact that this crisis disrupted the banking system worldwide, causing several major financial institutions, such as commercial banks, mortgage firms, insurance agencies, and credit unions, to fail. In addition to the financial industry, many large and small businesses failed to survive during the Great Financial Crises. The data came from sources such as scholarly literature from sources related to the causes and effects of the financial crises. The literature reflected behavior patterns and purposes that disrupted the global economy used by various countries. This research reflected that government leaders respond proactively and collaborate and share ideas, information, and resources to prevent a financial crisis of this magnitude from happening again. Bank managers must provide records publicly and promptly. As the United States, China, and Japan represent the largest economies, the U.S. governmental leaders must align with Japan to encourage China to support a global collaboration between the other global leaders to ensure sterner banking regulations. Consequently, this study could lead to a more stable global economy to prevent a future disaster of this magnitude.
The Financial Crisis as Manifestation of the so Called “The Political Trilemma of the World Economy”
Academic Journal of Interdisciplinary Studies, 2014
Over the centuries, have been many financial crises, which occurred in cycle shaken the world's largest economies. In general, crises are more or less similar in appearance, the appear occasionally. The same case is also the recent financial crisis of 2008, known as the global financial crisis, considered biggest crisis since 1930s, which create financial, economic and social problems. Financial and economic crisis later was transformed into a social and political crisis. Macroeconomic indicators analysis shows that the economic crisis has interrupted the positive trend of development. The most important lessons that the financial and economic experts and the biggest political leaders of the world took out of this unprecedented crisis, is that the "phenomenon of globalization" already is a constant challenge, whose economies of countries should adopt and also create mechanisms to deal with it. Through this paper, referring to scientific literature I will analyze what are the main causes of the financial crisis and what are their effects on the economy. Will be treated consistently as well as political trilemma, which shows the need of sacrificing one of the three pillars of Trilemma as: economic globalization, political democracy and national sovereignty who are reciprocally incompatible with one another.
The Current Global Financial Crisis 2008-2012
Acta Oeconomica
The current global financial crisis is considered as one of the biggest crises after the crisis of the years of 30's. The global financial crisis has affected all countries including developed and developing ones. It also has affected all the industries. Population with the low-income faced the greatest consequences. The last hope for the survival of the market economy was to undertake important steps for the nationalization of bankrupted banks and companies, thereby developing policies for the preservation of jobs. Through this analysis, we have included briefly some of the development followed the period of 2008 and onwards. A summary of statistics for some important economic indicators such as employment, exporting and importing is covered in this study as well.