financial crisis of 2008
Abstract
This paper discusses main reasons of global financial crisis, how it affected economies of different countries. In this paper we will examine the impact of financial crisis on the United States of America, the countries of European Union and Armenia. We will present problems that these countries had during the crisis, and how they managed to solve them. Paper consists of literature review from both primary and secondary sources. At the end, we will try to present solutions to problems that global economy is facing now.
Introduction
During the period prior to global financial crisis the developed and developing countries in total experienced remarkable economic boom. The annual growth rate was about 7%. Such a high growth rate was established as a result of four main elements combination: market in general, outstanding financing, high service prices and large financial transfers. Global economical history had experienced the combination of two elements, for instance in 1970s, while the combination of more than two never occurred before. The rise of Chinese market represents the fourth element that highly impacts world trade trends and service prices. Soon the global economic situation was altered, .
Global Financial Crisis Since the third quarter of 2008 the conditions of market were replaced. These changes were the consequent effects of financial chaos that rose in 2007 in the United States of America,. Afterwards the effect was so strong that transformed into the worst global financial crisis and depression since Great Depression, , . In other words the global initial fear in the rest of the world initiated as the market collapsed in United States. Consequently the economy of developing counties was affected either directly or indirectly. Now, as the market starts to rehabilitate the causes and effects of the crisis are widely evaluated and it appears to be that the crisis was unavoidable and that it
This paper discusses main reasons of global financial crisis, how it affected economies of different countries. In this paper we will examine the impact of financial crisis on the United States of America, the countries of European Union and Armenia. We will present problems that these countries had during the crisis, and how they managed to solve them. Paper consists of literature review from both primary and secondary sources. At the end, we will try to present solutions to problems that global economy is facing now.
Introduction
During the period prior to global financial crisis the developed and developing countries in total experienced remarkable economic boom. The annual growth rate was about 7%. Such a high growth rate was established as a result of four main elements combination: market in general, outstanding financing, high service prices and large financial transfers. Global economical history had experienced the combination of two elements, for instance in 1970s, while the combination of more than two never occurred before. The rise of Chinese market represents the fourth element that highly impacts world trade trends and service prices. Soon the global economic situation was altered, .
Global Financial Crisis Since the third quarter of 2008 the conditions of market were replaced. These changes were the consequent effects of financial chaos that rose in 2007 in the United States of America,. Afterwards the effect was so strong that transformed into the worst global financial crisis and depression since Great Depression, , . In other words the global initial fear in the rest of the world initiated as the market collapsed in United States. Consequently the economy of developing counties was affected either directly or indirectly. Now, as the market starts to rehabilitate the causes and effects of the crisis are widely evaluated and it appears to be that the crisis was unavoidable and that it
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