The Global Financial crisis
Posted by admin in Global Financial crisis on 12-09-2011
The experts comment that this crisis is not only the fault of the financial system, but also the fault of the government. We need to point down directly from the time of history, as to how frequent are these crisis and what are the familiar causes. The financial crisis is defined as the sharp deterioration of all/most of the group of financial indicators i.e. interest rates, failures of financial institutions, etc. The query should be to what extent of failure of these indicators should be considered as a crisis.
The major crisis of financial situation is very rare, but can the frequent small problems in the economy of any country be called as crisis? There are always different causes for these crises; an economist will always give all of them a different theory.
The infamous “depression” of the 1929, which left the world shaken, has not witnessed itself again. The financial situation has stayed average or higher, but did not go through such critical instances similar that time. Economic and financial regulators have tried their best to balance the economy well so that situation never worsens. All the economies should not depend on one country for their welfare, meaning if the economy of a country shatters, it shouldn’t indirectly affect the economy of the whole world.