Causes, Extent And Way Out Of The Global Financial Crisis
Causes, Extent And Way Out Of The Global Financial Crisis

Summary/Abstract: There is no clear and unequivocal conceptual content of the term crisis, but there are many and often mutually different interpretations. Crisis phenomenon has aroused the attention of a large number of researchers from different fields (economics, history, politics, medicine, ecology, psychology, etc.) so the concept of crisis is often used in different meanings for different research fields: psychology of the crisis of personality, medicine on a crisis as the peak of illness, and the ecology of thought to the critical vulnerability of the environment, and so on. The financial crisis has primarily occurred with the collapse of the U.S. mortgage lending market, quickly spread around the world, and in addition to the financial and affected real sector too. Causes of the crisis range from systemic characteristics and institutional characteristics of the economy up to the inadequate economic policies and the greed of some groups, in particular financial institutions and companies. In today’s world, financial transactions far exceed the value of world trade, a phenomenon known as the financialization, which results in a transfer of income from the real to the financial sector. Measures taken to overcome the crisis are of historic importance because the future configuration of the global financial and economic system will depend on their effectiveness.

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