Government Role During The Global Financial Crisis
AbstractIn 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 51592.
Date of creation: 03 Oct 2013
Date of revision: 18 Nov 2013
Publication status: Published in World Research Journal of Economics 1.2(2013): pp. 13-21
Global Financial Crisis; US economy; government failure; crisis recovery;
Find related papers by JEL classification:
- G0 - Financial Economics - - General
- G01 - Financial Economics - - General - - - Financial Crises
- G3 - Financial Economics - - Corporate Finance and Governance
- G30 - Financial Economics - - Corporate Finance and Governance - - - General
- G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
- H5 - Public Economics - - National Government Expenditures and Related Policies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-20 (All new papers)
- NEP-PKE-2013-12-20 (Post Keynesian Economics)
- NEP-PUB-2013-12-20 (Public Finance)
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