The Way Out of the Global Financial Crisis
The Way Out of the Global Financial Crisis: A Critical Justification of Causes and Effects.
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Table of Contents Abstract 3 Introduction – The Global Economic Crisis 4 Major corporate bankruptcies and country collapses 5 Rising unemployment 7 Downturns in economies in economic growth and collapses of the trade 8 Impact on Asian Countries and Sri Lanka 8 The way out of the crisis 9 Works Cited 10 Annex 01 11 Annex 02 12
Abstract
The widespread business contraction is one of the topical issues today. The global recession is the cause for this, and that is a generally accepted fact. Not only the business contraction, but also the increases in unemployment and shrinking government revenues are also newsworthy. However, it is accepted that, large economies have started recovering from the crisis, unemployment is a problem that has been solved yet, (Nanto, 2009). Numerous banks and individual households still face problems in restoring their balance sheets. As a definite remedy, industrialized as well as emerging economies (developing countries) constitute financial rescue packages such as, American Recovery and Reinvestment Act of 2009 (P.L. 111-5), (Nanto, 2009).
This note details about one of the fundamental dilemmas which discussed all over the world at present. Simply stated, this is the world economic crisis, which is also known as the world financial crisis which began in the latter part of 2007. More specifically, this was known as many economists to be the worst economic crisis since the Great Depression of the 1930s. Mainly, the collapses of large corporate and countries, as well as downturns in economies in economic growth, increasing unemployment, and collapses of the trade can be highlighted as the fundamental causes for the crisis. Given that, many large economies have turned into chaos as an awful repercussion of the crisis. However, many economists as well as countries as whole addressed remedies to prevent those so called
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Table of Contents Abstract 3 Introduction – The Global Economic Crisis 4 Major corporate bankruptcies and country collapses 5 Rising unemployment 7 Downturns in economies in economic growth and collapses of the trade 8 Impact on Asian Countries and Sri Lanka 8 The way out of the crisis 9 Works Cited 10 Annex 01 11 Annex 02 12
Abstract
The widespread business contraction is one of the topical issues today. The global recession is the cause for this, and that is a generally accepted fact. Not only the business contraction, but also the increases in unemployment and shrinking government revenues are also newsworthy. However, it is accepted that, large economies have started recovering from the crisis, unemployment is a problem that has been solved yet, (Nanto, 2009). Numerous banks and individual households still face problems in restoring their balance sheets. As a definite remedy, industrialized as well as emerging economies (developing countries) constitute financial rescue packages such as, American Recovery and Reinvestment Act of 2009 (P.L. 111-5), (Nanto, 2009).
This note details about one of the fundamental dilemmas which discussed all over the world at present. Simply stated, this is the world economic crisis, which is also known as the world financial crisis which began in the latter part of 2007. More specifically, this was known as many economists to be the worst economic crisis since the Great Depression of the 1930s. Mainly, the collapses of large corporate and countries, as well as downturns in economies in economic growth, increasing unemployment, and collapses of the trade can be highlighted as the fundamental causes for the crisis. Given that, many large economies have turned into chaos as an awful repercussion of the crisis. However, many economists as well as countries as whole addressed remedies to prevent those so called
Cited: Bellovary, J., Giacomino, D. & Akers, M., 2007. A review of bankruptcy prediction studies: 1930 to present. Journal of Financial Education, 33. Campbell, J.Y., Hilscher, J. & Szilagyi, J., 2011. Predicting financial distress and the performance of distressed stocks. Journal of Investment Management, 9(2), pp.1-21. International Monetary Fund (IMF), 2009. From recession to recovery: how soon and how strong? Chapter 3 in IMF. World Economic Outlook (WEO) Crisis and Recovery, Washington, D.C.. Nanto, D.K., 2009. The Global Financial Crisis: Analysis and Policy Implications. [Online] Congressional Research Service Available at: www.crs.gov [Accessed 01 May 2013]. Organization for Economic Co-operation and Development (OECD), 2008. OECD Employment Outlook. OECD, Paris. Reinhart, Carmen, M., Kenneth, S. & Rogoff, 2008. Is the 2007 U.S. Subprime Crisis So Different? An International Historical Comparison. American Economic Review, 98(2), pp.339–44. Verick, S., 2009. Who Is Hit Hardest during a Financial Crisis? The Vulnerability of Young Men and Women to Unemployment in an Economic Downturn. Institute for the Study of Labor, IZA DP No. 4359. Weerakkody, D.I., 2008. Global financial crisis and Sri Lanka. [Online] Available at: http://www.dailynews.lk/2008/10/13/bus27.asp [Accessed 1 May 2013]. Source: Reinhart, Carmen, M., Kenneth, S. & Rogoff, 2008. Is the 2007 U.S. Subprime Crisis So Different? An International Historical Comparison. American Economic Review, 98(2), pp.339–44.