The Current Economic Crisis: Causes, Cures and Consequences
AbstractThe financial crisis has brought about an economic recession which is more severe and widespread than any decline in production in the past 50 years. In the USA and Europe the decline in production over the entire economy was, however, much less than during the Great Depression of the 1930s. Only in manufacturing has the decline in some quarters of 2008-09 been equally sharp. This time, however, the economic policy makers reacted differently. The high income levels at the start of the crisis and the social systems in place were able to cushion the fall. The roots of the crisis are not only to be found in the financial sector but also in macroeconomic imbalances, in regulation failures and insufficient policy coordination. Previous experience shows that the length of the crisis will vary between the financial markets, the housing sector, production and employment, and that recovery could be slow, bumpy and fragile. Different approaches of economic policy are being systematically compared and we already discuss how the crisis can actually be turned into an opportunity. One even dares to suggest that some of the elements of the European Model (long-term orientation, stakeholder model) could serve as an example to the world, even if the crisis management in Europe is not without fault, and despite the fact that in the USA and China economic policy is reacting more decisively. It is necessary to coordinate European policy more closely internally as well as with that of the USA and of the dynamic economies of neighbouring countries and Asia in order to avoid further crises, and to proactively tackle worldwide problems such as climate change, and raw materials and food shortages.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by WIFO in its series WIFO Working Papers with number 341.
Length: 35 pages
Date of creation: 24 Aug 2009
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-24 (All new papers)
- NEP-FDG-2009-10-24 (Financial Development & Growth)
- NEP-FMK-2009-10-24 (Financial Markets)
- NEP-SEA-2009-10-24 (South East Asia)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Ajit Singh, 2012.
"Financial Globalization and Human Development,"
Journal of Human Development and Capabilities,
Taylor & Francis Journals, vol. 13(1), pages 135-151, February.
- Singh, A., 2011. "Financial Globalisation and Human Development," ESRC Centre for Business Research - Working Papers wp421, ESRC Centre for Business Research.
- Singh, Ajit, 2011. "Financial globalisation and human development," MPRA Paper 53043, University Library of Munich, Germany.
- Singh, Ajit, 2011. "Financial globalisation and human development," MPRA Paper 39048, University Library of Munich, Germany.
- Singh, A. & Zammit, A., 2010.
"The Global Economic and Financial Crisis: A Review and Commentary,"
ESRC Centre for Business Research - Working Papers
wp415, ESRC Centre for Business Research.
- Singh, Ajit & Zammit, Ann, 2010. "The global economic and financial crisis: a review and commentary," MPRA Paper 39052, University Library of Munich, Germany.
- Fritz Breuss, 2011. "Global financial crisis as a phenomenon of stock market overshooting," Empirica, Springer, vol. 38(1), pages 131-152, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilse Schulz).
If references are entirely missing, you can add them using this form.