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The Spread Of The Capital Markets’S Global Crisis: Does The Countries’ Industrial Profile Matter?

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Author Info
Claudiu Tiberiu ALBULESCU

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Abstract

The causes of 2007’s financial perturbations and mainly of the subprime crisis are well known at the beginning of 2008. Nevertheless, the specialists pay little attention to capital markets global crisis and to its consequences. In this study, we demonstrate using Infinancials data, that we are experiencing a global capital markets crisis, where the European financial markets are the most affected. The impact of the crisis upon the 45 analysed countries differs depending on their industrial structure. Among the other factors which led to a different impact of the global crisis we can range the capital markets development and the correction of the assets prices boom. The effects of this crisis on the real economy are less obvious at the beginning of 2008, especially at European level, but the economic growth forecasts became pessimistic. The credit activity is negatively influenced and the foreign exchange market crosses over a turbulent period. The financial crisis consequences in respect of the real economy will depend on the recovery capacity of the United States economy.

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Publisher Info
Article provided by Spiru Haret University, Faculty of Financial Management and Accounting Craiova in its journal Journal of Applied Economic Sciences.

Volume (Year): 3 (2008)
Issue (Month): 4(6)_Winter2008 ()
Pages:
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Handle: RePEc:ush:jaessh:v:3:y:2008:i:4(6)_winter2008:32

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Web page: http://www2.spiruharet.ro/facultati/facultate.php?id=14
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Related research
Keywords: capital markets contagion; global financial crisis; subprime crisis; stock prices; industrial profile;

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This page was last updated on 2009-12-20.


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