The Causes and Consequences of the Global Financial Crisis

Yuriy V Kozyr

doi:10.4172/2332-0761.1000163

Abstract

The news of the global financial crisis has been observed on the TV screens and exists in the newspaper headlines ever present in recent months. We are witnessing that the governments of various countries are beginning to plan periodically an anti-crisis release of the next portion of cash infusion into the economy to overcome the challenges of the crisis. However, it is unclear on what basis decisions on cash injections are taken, how the authors of these solutions work the mechanism of the cash inflows in the economy and what we can expect from them. It appears that the effective response to overcome the crisis would necessitate, first of all, an understanding of the main driving forces and factors affecting both the global economy and the economies of individual countries and regions. We will take a closer look to understand these causes. According to the author of this paper, the causes of the crisis in general, including the present one in particular, are the following factors:

Highlights

The news of the global financial crisis has been observed on the TV screens and exists in the newspaper headlines ever present in recent months
We are witnessing that the governments of various countries are beginning to plan periodically an anti-crisis release of the portion of cash infusion into the economy to overcome the challenges of the crisis
It is unclear on what basis decisions on cash injections are taken, how the authors of these solutions work the mechanism of the cash inflows in the economy and what we can expect from them

Summary

Introduction

The news of the global financial crisis has been observed on the TV screens and exists in the newspaper headlines ever present in recent months. Everyone understands that the rapid growth of prices for the products in one sector is possible only for a limited period of time.

Results

Conclusion