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The Economic Crisis and Several Effects on Global Economy

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  • Florina BRAN

    (Bucharest Academy of Economic Studies)

  • Carmen Valentina RĂDULESCU

    (Bucharest Academy of Economic Studies)

  • Ildikó IOAN

    (Bucharest Academy of Economic Studies)

  • Florentina Olivia BĂLU

    (Bucharest Academy of Economic Studies)

Abstract

The main mechanism of profit making is not production according to the outcomes of several analyses of the current economic crisis. This mechanism is circulation and exchange. Starting with this observation the paper goes through a number of aspects regarding the relation between crisis and economy at global level. These aspects consist in the recent financial turmoil; who pays for the crisis; stabilizing the financial sector; recession and the financial crisis; the internationalization of the crisis; commodities and the ecological crisis; an end to neo-liberalism; what should socialists demand. We notice and comment on how important current development in the wake of the banking crisis is for the transmission of that crisis to the rest of the economy and its interaction with the more general economic crisis now emerging. It was concluded that there are good chances that the current economic order to be broken. The future shape of the order will depend more on vision of managers than on the influence of the so called objective factors.

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Bibliographic Info

Article provided by Asociatia Generala a Economistilor din Romania - AGER in its journal Theoretical and Applied Economics.

Volume (Year): XVIII(2011) (2011)
Issue (Month): 5(558) (May)
Pages: 91-106

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Handle: RePEc:agr:journl:v:5(558):y:2011:i:5(558):p:91-106

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Keywords: financial crisis; global economy; ecological crisis; neoliberalism.;

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