Global Financial Crisis Of 2007-08 - 2494 Words

Introduction The global financial crisis of 2008-09 that spread contagiously across the globe has particularly hit the European economies hard, accentuating turmoil in the world financial markets and precipitating the European sovereign debt crisis almost instantaneously. This has consequently wiped away all of the EU’s accomplishments in economic growth and job creation (European Commission, 2010a:3). Statistics published subsequently exposed the magnitude of the crisis: real GDP contracted by 4%, unemployment soared at an unprecedented level, public finances deteriorated, and social cohesion in the EU has fragmented (Eurostat, 2010). The crisis has also exposed the fundamental weakness of the Union, especially in the face of new challenges from emerging market competition, an ageing population, and depletion of resources. Therefore, the Europe 2020 strategy adopted by the European Commission in 2010 introduces a new growth model for the EU to respond to the various challenges mentioned a bove, particularly the global financial crisis. (European Commission, 2010a:5). The Europe 2020 strategy aims to create an environment for â€Å"smart, sustainable and inclusive growth† achieved through the 5 interrelated headline targets of employment, innovation, education, social inclusion, and climate change/energy (Europe Commissions, 2010d). To support the targets, 7 flagship initiatives have also been initiated. To achieve â€Å"smart growth†, Europe 2020 simultaneously promotes anShow MoreRelatedThe Global Financial Crisis Of 2007 / 081194 Words   |  5 Pagestrillion dollars. The Australian government has to deal with multiple issues in the macroeconomic world to achieve three goals. The factors affecting these goals have to be identified and either harnessed or blocked by the government. The Global Financial Crisis of 2007/08 also caused the Australian government to deal with its failure to reach its macroeconomic goals. The three domestic objectives of government Australia’s three macroeconomic goals are equally important in keeping stability in theRead MoreThe Global Financial Crisis Of The Usa1383 Words   |  6 PagesThe recent global financial turmoil started on July 2007 ,mainly in the USA and spread among developed nations in the later part of 2008 and subsequently shifted to the developing nations .this crisis consisted of some prime drawbacks not only for the developed countries but also for developing countries .the most talked about issue in the recent financial arena in the global financial crisis ,which started to show its effect in the middle of the year 2007.the turmoil ,however ,was rooted in theRead MoreDeregulation Is The Underlying Cause Of The 2007 / 08 Financial Crisis1382 Words   |  6 Pagesderivatives. The Financial crisis in 2007-2008 brought the massive hurt to everyone in the world. The worldwide financial problem affected thirty million people loosing their jobs and cause many countries getting close to g o bankrupt (Peah, 2014). This is the global issue that everyone should be consider of. The purpose of this essay is to determine if the deregulation was the underlying cause of the 2007/08 financial crisis. The essay argues the deregulation was the underlying cause of the 2007/08 financialRead MoreFinancial Crisis : The Fiscal Crisis1355 Words   |  6 Pagesgeneral, a financial crisis is not an accident; it may take several years and has complex and interlaced causes (Claessens and Kodres, 2014). The 2007-08 global financial crisis is a typical case due to long-term non-intervention policy and loose regulation for financial market from government. Moreover, it involved the complex relationship between government and financial institutions. In order to look at this issue in particular, this essay first goes though the timeline of the 2007-08 financial crisisRead MoreThe Great Recession And The Housing Crisis1600 Words   |  7 Pagesrecession of 2007 -2008 and the Housing bubble a nd the latter talks about the newspapers articles and other opinions of economists which support the idea of approaching bubble. These reflect the conditions in those specific areas related to them or demonstrate the housing behavior in overall United States. THE GREAT RECESSION The financial crisis that began in August 2007 has been the most severe of the post-World War II era and, possibly--once one takes into account the global scope of the crisis, its broadRead MoreThe Deregulation Of Domestic Financial Sector1288 Words   |  6 PagesToday, it is considered to be a common knowledge, that the deregulation of domestic financial sector and opening of capital account of the balance of payments played a major role in the recent economic crisis of 2007-08. Policies, that have been stated above can be put together and named as the liberalization of the capital account. Liberalization stands for lessening of government regulations and restrictions in the economy. It offers a certain sector of the economy an opportunity to compete internationallyRead MoreFinancial Crisis And Its Effects On The World Economy1467 Words   |  6 PagesAbstract Between the years of 2007 to 2008, the world was faced with a major financial meltdown with global market failures and economies in shambles. The emergence of subprime mortgages and the collapse of securitized derivatives led to much speculation of different causes. What was the root factor that led to the triggering of this financial crisis? This research conducts a comparative analysis of my research and beliefs on the cause of the crisis contrary to other researchers’ conclusions. ItRead MoreRole Of Investment And Commercial Banks Play On The Global Economy Essay1185 Words   |  5 PagesIntroduction: This paper will examine the roles that investment and commercial banks play in creating and predicting systemic risk in the global economy. This topic is of particular relevance due to the events that unfolded in the economic sphere nearly a decade ago during the financial crisis of 2007-2008. Our study will provide a detailed rendering of the crisis, outlining each of the key factors that contributed to the crash in an attempt to gain a better understanding of what happened and how toRead MoreHow Banks Went Broke : A Look Into The Financial Crisis Of 2007-20081696 Words   |  7 Pages Lawrence Humes 4/28/15 Mr. Donnellan Period 1 How Banks Went Broke: A Look into the Financial Crisis of 2007-2008 Nobody foresaw what was about to happen to the economy. In the beginning of the 21st Century the economy was at a state of peace and unity. People were taking loans and purchasing houses that they normally couldn’t afford while these houses were increasing in value. The banks were giving out loans to the people to purchase the houses and earning money on the interest ofRead MoreIntroduction Of The Bank Of England986 Words   |  4 Pagesfascinating for one to track on how the global financial integration has been evolving for the past century. Understanding the evolution of output is possible by looking at the measured stocks of the external assets and liabilities; together with the cumulative consequences of the past cross-border capital flows. Global integration of trade and finance started prior to the World War I, at the time when the capital liberalization was last at their peak. Both global integration of trade and finance fell